Computerization and the Decline of Unincorporated Self-Employment
We investigate the effect of the computer adoption rate, referred to as computerization, on the proportion of unincorporated self-employed individuals within the US labor markets. The conceptual framework suggests that computerization may either augment or diminish this share. Employing a Bartik instrument approach, we disentangle the causal effect of computerization on unincorporated self-employment from 1990 to 2010. Our empirical findings indicate that a 1% increase in computerization corresponds to a 0.79% reduction in the share of unincorporated self-employed individuals. Notably, these estimates exhibit variations across industries and metropolitan areas.
Authors
- Yao‐Yu Chih (ORCID: https://orcid.org/0000-0002-5192-337X)
- Zexuan Liu
- Sunhyung Lee (ORCID: https://orcid.org/0000-0003-3549-7275)
Institutions
- Montclair State University (US)
- Nanjing Audit University (CN)
Publication Details
- Journal
- Journal of Human Capital
- Published
- 2025-02-03
- DOI
- https://doi.org/10.1086/735105
- Primary Topic
- Labor market dynamics and wage inequality
- Type
- article
- Field-Weighted Citation Impact
- 0.00