Does ICT Usage Erode Routine Occupations at the Firm Level?

Abstract

We show that disappearing routine work can be linked to firm-level ICT usage. Our results for the increasing abstract and declining routine occupation shares of total wage bill are consistent with job polarization at the firm level. The observed changes coincide with the usage of ICT in firms. These results are based on decompositions and regression analyses that evaluate the hollowing-out of routine occupations and job polarization at the firm level.