Impact of digital transformation technology adoption on worker wages

Abstract

This study examines the impact of digital transformation technology (DTT) adoption on individual worker wages using Korean worker panel data from 2017 to 2022. Using industry-level DTT adoption rates, we investigate how DTT adoption affects wages across various task types and industries. Our findings reveal a statistically significant wage reduction effect of DTT adoption in both the manufacturing and non-manufacturing sectors. We observe nuanced effects across different task types, with cognitive tasks experiencing more significant wage reductions than manual tasks. Furthermore, older and less educated workers face greater wage reductions. Our study contributes to the understanding of the labor market implications of technological advancements.