Computers as stepping stones? Technological change and equality of labor market opportunities

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URN:	urn:nbn:de:bsz:180-madoc-626021
Document Type:	Working paper
Year of publication:	2022
The title of a journal, publication series:	ZEW Discussion Papers
Volume:	22-014
Place of publication:	Mannheim
Publication language:	English
Institution:	Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Classification:	JEL: J21 , J23 , J24 , J31 , J62 , O33,
Keywords (English):	skill-biased technical change , wage inequality , equality of opportunity , intergenerational persistence , parental background , class ceiling
Abstract:	This paper analyzes whether technological change improves equality of labor market opportunities by decreasing returns to parental background. We find that in Germany during the 1990s, computerization improved the access to technologyadopting occupations for workers with low-educated parents, and reduced their wage penalty within these occupations. We also show that this significantly contributed to a decline in the overall wage penalty experienced by workers from disadvantaged parental backgrounds over this time period. Competing mechanisms, such as skill-specific labor supply shocks and skill- upgrading, do not explain these findings.

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BASE: Arntz, Melanie ; Lipowski, Cäcilia ; Neidhöfer, Guido ; Zierahn, Ulrich

Google Scholar: Arntz, Melanie ; Lipowski, Cäcilia ; Neidhöfer, Guido ; Zierahn, Ulrich

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