Contribution of ICT on Labor Market Polarization: an Evolutionary Approach

This paper analyses the role of Information and Communication Technologies (ICT) on the job market polarization. We rely on an evolutionary framework by applying a “distance from mean approach”. Using data for 8 industrialized economies, we account for probable heterogeneous and timevarying effects through the estimation of a semi parametric smooth coefficient model. Our results show a significant contribution of ICT on polarization dynamics with some differences between countries and industries. We also find evidence that diffusion of ICT is initially accompanied by a Skill Bias Technological Change (SBTC), then contributing to job market polarization. Finally, our findings highlight a progressive weakening of the positive link between ICT diffusion and the increasing demand for high-skilled workers over time.