World of work 4.0 : an increase in prosperity or inequality and the loss of jobs - what does digitalisation lead to?

Abstract

"The world of work is once more in a period of radical change. In the public debate, fears are being voiced that technological change and in particular digitalisation will lead to the loss of jobs. Are these fears justified, or will the 'world of work 4.0' actually create new jobs and an increase in prosperity? Oliver Stettes, from the Cologne Institute for Economic Research, points to the difficulties of assessing to what degree jobs can be replaced by digital technology. Irrespective of how prominent the fears are that algorithms, computers or robots will replace humans in the world of work to a massive extent, no one (yet) seems to be able to offer empirical support for this hypothesis at the present point in time. Melanie Arntz, Terry Gregory and Ulrich Zierahn from the Centre for European Economic Research (ZEW) in Mannheim see above all massive structural change as a result of digitalisation. While it is likely that new technologies will crowd out jobs, at the same time they will allow new jobs to emerge, whereby in the recent past the positive effect dominates. Katharina Dengler from the Institute for Employment Research (IAB) in Nuremberg also does not foresee any massive reduction in employment on account of digitalisation. However further training and lifelong learning are important. Daniel Veit from the University of Augsburg and the MÜNCHNER KREIS emphasises the emerging need for action on the part of society and political authorities which, in his opinion, covers - along with education and further training - in the first place the development of meta-competences. Here encouraging creativity and the willingness to experiment in a stronger way will be an essential task of the actors in the educational sector. Werner Eichhorst and Ulf Rinne of the Institute of Labor Economics (IZA) in Bonn are of the opinion that the risks linked to digitalisation are 'definitely controllable'. The empirical evidence currently available suggests that 'there is no need for alarmism and exaggerated fears'. At the present time, one has the opportunity to act." (Author's abstract, IAB-Doku)

Cite article

Stettes, O., Arntz, M., Gregory, T., Zierahn, U., Dengler, K., Veit, D., Eichhorst, W. & Rinne, U. (2017): Arbeitswelt 4.0. Wohlstandszuwachs oder Ungleichheit und Arbeitsplatzverlust - was bringt die Digitalisierung? In: Ifo-Schnelldienst, Vol. 70, No. 7, p. 3-18.