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Researchers at Utrecht University have recently received grants from the European Union within the Horizon 2020 initiative as part of the project  (GI-NI). These funds facilitate their research on the consequences of technological change for the labour market. The consortium is led by TNO and brings together researchers from several European countries.

Emilie Rademakers and Ulrich Zierahn, both assistant professors at Utrecht University, jointly lead Work Package 3 to study the transformative impact of technology on skills in the labour market. The project started in April 2021 and runs for four years. Rademakers and Zierahn ar both involved in the Future of Work hub at Utrecht University.

Technological change is associated with deep structural shifts in the demand for skills. Most importantly, it reduces the demand for workers in so-called routine tasks. These are tasks that follow a clear set of rules and can thus be codified, which makes them susceptible to substitution by computer-controlled machines. Routine tasks are particularly prevalent at middle-paid jobs, such as among office-clerks. The spread of computer-controlled machines therefore lead to a decline in demand for workers in middle-paid jobs, resulting in a polarisation of the labour market. While these shifts are well documented in many economies, so far there exists very little evidence at the firm and worker level. Within work package 3 of the , Emilie Rademakers and Ulrich Zierahn study the role of technological change for labour at the firm and worker level.

Firm-level technology adoption

In the first part of their work package, the researchers adopt novel data to understand how and why firms invest in cutting-edge technologies and what the impact of these investments are on firm-level productivity, the emergence of superstar firms, employment and occupational structures. Their research focuses on questions, such as: How do firm’ technology choices affect employment and wages? Which technologies require complementary investments into worker training, which don't? Which occupations and skills win, which loose due to new technologies?

Worker resilience to technology shocks

In the second part of their work package, the researchers turn the focus on the consequences of technology shocks for workers: their wages, careers, and mobility. They pay specific attention to the role of upskilling and mobility across labour markets as an instrument (insurance) to become more resilient to changes.
The results of the research will be integrated with the other work packages of the GI-NI consortium to formulate policy recommendations on how to achieve inclusive growth against the background of three major transformations: technological progress, globalisation, and migration.