Technological Change: Origins and Impacts in the Labor Market

Abstract

This dissertation examines the interplay between technological progress, skill supply, worker outcomes, equality of opportunity and local aspects, focusing on the German context. It addresses four key areas: the impact of young worker shortages on firm technology adoption, the responsiveness of vocational training to technological changes, the effect of technological progress on labor market fortunes of workers from disadvantaged parental backgrounds, and the role of urban amenities in attracting skilled workers.

Using an education reform in Germany as a natural experiment, Chapter 2 shows that firms facing shortages of young workers reduce their technology investments because young workers have a comparative advantage in learning new skills required for new technologies compared to incumbent workers. Chapter 3 investigates how educational content adapts to technological advancements. It reveals that German vocational training curricula have increasingly incorporated digital and non-routine skills over time, leading to better wage outcomes for workers trained under updated programs. Chapter 4 shows empirically that increased computerization reduces the wage penalty for high-qualified workers with low-educated parents, suggesting that technological progress can enhance labor market opportunities for disadvantaged individuals. Chapter 5 examines the preferences for urban amenities among workers of different skill levels. Through a stated-preference choice experiment, the chapter finds that while all workers value urban amenities, there is no significant difference between the preferences of college graduates and non-graduates.