Browsing by Subject "technological change"

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  • Turja, Tuuli; Taipale, Sakari; Kaakinen, Markus; Oksanen, Atte (2020)
    Successful implementation of robots in welfare services requires that the staff approves of them as a part of daily work tasks. In this study, we identified psychological and socio-demographic determinants associated with readiness for robotization among professional Finnish care-workers. National survey data were collected from professional care workers (n = 3800) between October and November 2016. Random samples were drawn from the member registers of two Finnish trade unions. The data were analyzed with regression models for respondents with and without firsthand experience with robots. The models explained 34–39% of the variance in the readiness for robotization. The readiness was positively associated with self-efficacy, perceived social norms, interest in technology, and perceived impacts on employment. It was also found that the readiness was less determined by age, gender, profession and job satisfaction among the respondents with firsthand robot experience. Among care workers with no experience with robots, older age and lower job satisfaction predicted a readiness for robotization. Care workers stand out as a distinctive group of potential service robot users, with their high confidence in using new technology and low job satisfaction predicting a higher readiness for robotization. Social norms among care workers emerged as an important factor in the readiness for robotization.
  • Lindfors, Teppo (Helsingin yliopisto, 2019)
    Within the last forty years, capital has increased its share of national income at the expense of labour across developed and developing economies, with few exceptions. The trajectory has been successfully linked to technological change, globalisation and the erosion of the bargaining power of employees in theoretical and empirical examinations. Due to short time series, it has remained unclear whether the increase in capital share is a consequence of modern trends, such as hyperglobalisation or the ICT-boom. Recognizing the mechanisms behind the increase is worthwhile from the social planner’s viewpoint, because of factor shares’ connection with personal income inequality and unemployment, both triggers of social unrest. This thesis examines the connection between labour income share and its potential determinants in Finnish industry, namely technological change, globalisation, union power, devaluations, capital mobility and public expenditure between 1907 and 2015. The main empirical strategy used was the fixed effects regression, where the first three aforementioned determinants were proxied with capital intensity, total factor productivity (TFP), import and export exposure, union density and the number of strike days per worker, while controlling for branch fixed effects, common national trends and branch-specific trends. The last three country-level determinants were studied using time series analysis. The primary data source was Bank of Finland’s Growth studies, which was complemented with the data in various volumes of the Official Statistics of Finland, in addition to selected separate publications. According to the results, technological change has a negative effect on labour share, while union power and import exposure have a positive impact. Periodizing, the increase in capital intensity can more than explain the decrease in labour share from 1907 to 1943. Between 1943 and 1991 the quadrupling of union density accounts around a third of the 28.2 percentage point increase in labour share. From 1991 to 2007, the acceleration of TFP growth rate can predict around 60% of the 23.7 percentage point decline in labour share. The findings suggest, that technology is the key driver of functional income distribution also in the long-term, which complements its importance in the recent increase in capital shares, covered in previous research. Moreover, in the early 20th century technology appears to have worked more as a substitute for labour, while after mid-century it has become rather complementary and efficiency-improving. In addition, the ICT era has brought along an increase in market concentration, implying that technology operates also potentially through rising economic rents. Union power had a non-trivial role in inflating labour share during the post-WWII decades. Finally, import exposure has increased labour share presumably by squeezing profits, but its significance is overshadowed by the other covariates.
  • Einiö, Elias (2006)
    In this paper, we study whether the implementation of new technologies has increased the relative demand for highly skilled workers. We use data on Finnish manufacturing plants over the years 1986-2002. Our rich plant-level data set covers basically all manufacturing plants which employ at least 25 persons. To empirically tests the hypothesis of skill-biased technical change (SBTC), we apply the general index approach proposed by Baltagi and Rich (2005). This approach has the advantage of allowing for an unconstrained time path of SBTC. It also avoids the problem of omitted technology variables in the prevalent proxy variable approach. Our paper contributes to the empirical literature on SBTC in several ways. First, we take into account the problems caused by a fractional response variable, a cost share bounded between 0 and 1. In our analysis, we use logit transformation to solve this problem. As logit transformation excludes boundary observations, we check the robustness of our regression estimates by the Bernoulli quasi-maximum likelihood method. Second, because the effect of technology on the factor intensities is presumably different across industries, we allow for different time paths of SBTC across industries. Third, we calculate the bootstrap estimates of the standard errors and confidence intervals for the labour demand elasticity estimates. Our main findings are the following. There is evidence on SBTC in six out of twelve two-character NACE industries. We find indications against the skill-bias hypothesis for one industry. Thereby, our results support the view that there have been some technology-induced changes in labour demand that favour more skilled workers. However, the pattern of SBTC is different across industries. Strong evidence supporting the capital-skill complementarity is also found. Finally, our results show that research and development (R&D) intensity and our index of SBTC correlate negatively, indicating that R&D intensity is one of the sources of skill-biased technical change.