The Pandemic Push: Digital Technologies and Workforce Adjustments

Christina Gathmann, Christian Kagerl, Laura Pohlan, Duncan Roth

Research output: Working paper

Abstract

Based on a unique survey and administrative employer-employee data, we show that the COVID-19 pandemic acted as a push factor for the diffusion of digital technologies in Germany. About two in three firms invested in digital technologies, in particular in hardware and software to enable decentralized communication, management and coordination. The investments encouraged additional firm-sponsored training despite pandemic-related restrictions indicating that investments in digital technologies and training are complements. We then demonstrate that the additional investments helped firms to insure workers against the downturn during the pandemic. Firms that made additional investments relied less on short-time work, had more of their regular employees working normal hours and had to lay off fewer marginal workers. Male, younger and medium-skilled workers benefitted the most from the insurance effect of digital investments.
Original languageEnglish
Place of PublicationBonn
PublisherIZA – Institute of Labor Economics
Number of pages51
Publication statusPublished - Apr 2023

Publication series

NameIZA Discussion Paper Series
PublisherIZA Institute of Labor Economics
No.16062

Keywords

  • pandemic
  • COVID-19
  • digital technologies
  • Germany
  • innovation
  • investment
  • training
  • working flows

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