The heterogeneity of organizational structure changes in Brazilian firms with the arrival of the internet

After the privatization of telecommunications companies in Brazil in the late 1990s, Brazilian cities experienced an expansion of internet services. This paper analyzes the impact of this technological shock on the relative employment of managers between sectors according to their technological intensity. We combine three distinct sources of information to build a rich database in which the observation level is defined by combinations of detailed sectors, municipality and year. As internet rollout across municipalities was not random, we rely on a triple difference approach for our empirical strategy. Our results show a more pronounced effect of internet arrival on the share of managers, in technology-intensive sectors. In other words, internet arrival contributed to a higher concentration of top jobs in high tech sectors. This result raises concerns that technologies may exacerbate inequalities in the labor market.