Abstract:
This analysis of the determinants of firm-level skill intensity is closely related to the approach adopted by Doms et al. (1997). The effect of
computer investment on the share of non-production workers are exami=
ned
and a significantly positive relationship is found. Br=
esnahan
et al. (1999) estimate IT capital demand functions for college-educated wor=
kers
and professionals based on a panel of 311 <=
st1:place
w:st=3D"on">US firms. Their findings sugg=
est
that IT capital is positively correlated with
investments in human capital and workforce skills. It is
concluded that skill-IT complementarity =
is the
dominant factor in explaining the demand for skilled labor. While acknowled=
ging
that there is a causal relationship running from IT capital to the share of
highly skilled technical workers, the analysis is based=
on the assumption that the skill level of the workforce drives the demand f=
or
IT capital. This assumption may be violated, how=
ever,
in situations where firms hire more skilled labor to efficiently use the
previously installed IT capital.