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Available online at
ScienceDirect
Journal of Policy Modeling 39 (2017) 1–18
The impact of ICT and e-commerce on employment
in Europe
Federico Biagi a , Martin Falk b,∗
a European Commission, Joint Research Centre (JRC), Directorate Growth Innovation, Human Capital and
Employment Unit and University of Padua, Italy
b Austrian Institute of Economic Research, WIFO, Austria
Received 18 July 2016; received in revised form 5 October 2016; accepted 20 December 2016
Available online 9 January 2017
Abstract
This study presents new empirical evidence regarding the impact of ICT/e-commerce activities on labour
demand. The data is based on new and unique data for 10 European countries for the period 2002–2010. A
key feature of the empirical analysis is the use of several types of advanced ICT activities, such as enterprise
resource planning (ERP) systems, mobile internet access, and e-commerce practices. The main result of the
study is that the increase in ICT/e-commerce activities over time has not led to a decline in jobs. This holds
true for both manufacturing and service industries, as well as for SMEs and large firms. For ERP systems
and websites, there is some evidence of positive effects. These findings do not support the hypothesis that
ICT utilization is leading to labour substitution overall. In fact, ICT activities appear to be rather neutral
to employment. The results are robust not only to the model specification, but also the estimation method
applied.
© 2017 The Society for Policy Modeling. Published by Elsevier Inc. All rights reserved.
JEL classifications: O33; J23
Keywords: Labour demand; Information and commu
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