More than 20 researchers joined a WeLaR webinar on 28 November 2024 to discuss recent studies examining the connections between demographics, education, and technological innovation in driving economic progress.
“The Interplay of Demographics, Education, and Technology in Shaping Economic Progress” was organised by WeLaR partner IBS – Institute for Structural Research.
In the first presentation, Cäcilia Lipowski (ifo Institute – Leibniz Institute for Economic Research) examined how shortages of young workers hinder firms’ technology investments. She used a natural experiment from a 2001 German education reform that temporarily reduced the labour supply of trainees. Her findings reveal that young workers are critical for adopting new technologies, due to their adaptability and lower training costs, with firms experiencing declines in tech investment when such workers are scarce. While a reduced supply of young labour market entrants may not always decrease tech adoption, it will always increase its costs. See the presentation here.
Next, Guido Neidhöfer (Turkish-German University) shared a database of indices tracking intergenerational mobility across Europe, developed in collaboration with Sarah McNamara (ZEW) and Patrick Lehnert (University of Zurich) to provide insights into regional variations and historical trends. Their study shows that higher intergenerational educational mobility is strongly linked to increased regional innovation. Their research implies that policies enhancing equality of opportunity can drive long-term efficiencies and innovation without a trade-off between equity and economic growth. The presentation is available here.
In the third presentation, Julian Vedeler Johnsen (Universitetet i Bergen) presented findings from a project conducted with Patrick Bennett (University of Liverpool) on the impact that automation and immigration have on non-college-educated workers in Norway. Their results show that automation disproportionately impacts non-college-educated workers, particularly in manufacturing and construction, with spillover effects leading to declines in construction jobs. These impacts are amplified when combined with immigration shocks, creating downward pressure on wages and pushing workers into lower-quality jobs or lower-paid occupations. See the presentation here.
The webinar concluded with a presentation by Piotr Lewandowski (IBS), who discussed his ongoing research with Karol Madoń on the influence of automation on teenagers’ career choices in Norway. Preliminary findings suggest that exposure to robots reduces the likelihood of teen boys selecting vocational tracks prone to automation, with the effect being more pronounced among those whose fathers work in sectors heavily impacted by robots.
