Does the ICT Investment of Firms Create Jobless Growth?
Jae-yoon Sim (Business School, Hanyang University)
Jongho Lee (Senior Researcher, Innovation Center, Seoul National University)
Su-Ho Park (Senior Researcher, Korea Institute for Advancement of Technology)
Woo-Jin Jung (Research Professor, Barun ICT Research Center, Yonsei University)
Jobless Growth, one of the most issue keywords for Korea’s economy at this moment, stands for an economic situation where the unemployment rate once edging up at the downturn does not fall sharply even after a business cycle is on the stage of its recovery. A remarkable progress of ICT has intensified the apprehension of technology displacing human labor. A remarkable progress of ICT has intensified the apprehension of technology displacing human labor historically. Nowadays, ICT as the main cause for recent jobless growth in Korea ends up with pointing out. This study is to investigate whether the ICT leads to an economic situation of jobless growth. We served an empirical analysis using firm-level panel data from 2009 to 2013 and estimated the effects of ICT on both firm’s employment and productivity. A result suggests not only does the employment increase with the rise of ICT investment, but also the employment becomes a complete mediator in terms of linking ICT and firm’s productivity. It turns out to be a groundless fear that the ICT rules out human labor causing jobless growth for Korea’s economy according to the result revealed.
Jobless growth, ICT investment, Panel data, Mediating effect, Structural equation, Knowledge management
Knowledge Management Research, Vol.20 No.3