Jobs mismatch and productivity impact of information technology

Abstract

This paper studies the link between jobs mismatch and the impact of information technologies (ITs) on the efficiency of small service firms. From the perspective of job matching theory, the paper explores how small service firms that use ITs obtain an optimal matching between new skill requirements and workforce skills. The hypotheses suggest that optimal equilibrium will be obtained by matching IT intensity to ITs training and the proportion of workers with high educational levels. The study tests the hypotheses on a large sample of small services firms in Spain. The results confirm that matching the educational levels of the workforce with the IT intensity of the firm increases the efficiency of small service firms, while mismatch will decrease it. The contribution of IT training to firms' efficiency depends on training intensity but not on IT intensity.

Keywords:

• human capital
• productivity
• organizational change
• skill
• training

Acknowledgment

We also thank José Benitez-Amado, Jesus Peña-Vinces and George Benson for their useful comments. The authors are solely responsible for all limitations and errors that may relate to the study and the paper.

Funding

This work was supported by the Grant-in-Aid for Scientific Research of Ministry of Science and Innovation [grant number ECO2010-19787].