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A Study on the Impact of IT Investment on Demand for Labor

  • Informatization Policy
  • Abbr : 정보화정책
  • 2010, 17(4), pp.44-60
  • Publisher : NIA
  • Research Area : Social Science > Public Policy

홍효진 1 Pilky Hong 2 Young Soo Lee 3

1한국정보화진흥원
2서울디지털대학교
3한국항공대학교

Accredited

ABSTRACT

Under the continuing economic growth without increase in employment, issues regarding the impact of IT investment on demand for labor have been continuously raised. Under the circumstance, this study carried out an empirical analysis on the impact of IT investment on employment with a sample of 498 businesses whose domestic sales for the period of six years from 2003 to 2008 are KRW 100 billion or above. The result of the analysis found that IT investment increases employment in most of the industries except for some of the service sectors. In the manufacturing industry, more IT investment increased employment but decreased the flexibility in demand for labor; therefore, IT investment has a substitutional relationship with low-skilled labor and a complementary relationship with high-skilled labor. In the areas of electricity, gas and construction, employment increased as IT investment increased, with the greatest flexibility in demand for labor. In the service industry, increase in IT investment led to more employment and higher flexibility in producer services only. On the other hand, there was no meaningful relationship found between IT investment and employment in the areas of distribution services and social services.

Citation status

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