Canonical Correlation Analysis and a New Composite Index on Digitalization and Labor Force in the Context of the Industrial Revolution 4.0

Abstract

The current phenomenon of the economy-accelerated digitalization, known as the “Industry 4.0”, will generate both an increased productivity, connectivity and several transformations on the labor force skills. Our research objectives are to determine the influence that digitalization has had on the workforce in several developed countries and to propose a new composite indicator that reflects these dynamics over time. We have used the Canonical Correlation Analysis (CCA) in order to identify and analyze the correlations between two sets of variables, an independent one and a dependent one. Data were collected from the World Bank and World Economic Forum for the years 2018–2019. Based on the results of our research we have determined and made a consistent analysis of the new composite index of digitalization and labor force in 19 countries. The results of our research are relevant and show not only the impact of digitalization on the labor force in different countries, but also the structural changes required by the new economic and social models. Our research can help decision-makers get in advance the necessary measures in the field of labor force in order to ensure a proper integration of these measures into the new economic model based on digitalization.

Digital Literacy in Digital Society 5.0: Some Challenges

“…This paper aimed to develop an analysis of the challenges that old and new potential social inequalities pose to social inclusion in this super-smart society. The results of the documentary analysis carried out show that this (possible and potential) society, together with the COVID-19 pandemic, contributed to promoting and accelerating the process of digitalization (Androniceanu et al, 2020;Buchholz, DeHart, & Moorman, 2020;Jormand et al, 2020).…”

“…The concept of Industry 4.0 was created in Germany in 2011. It is generally defined as the fourth industrial revolution and has already brought about profound changes in the paradigm of the form of While Industry 4.0 is a concept that invests in digital technology to foster constant innovation in the form of production and services, with the resulting economic effects (Androniceanu, Georgescu, Tvaronavičienė, & Androniceanu, 2020;Berawi, 2019;Trstenjak, Opetuk, Cajner, & Tosanovic, 2020) through the "digitalization of production and digitalization of consumption" (Salimova, Vatolkina, Makolov, & Anikina, 2020, p. 486), its implementation and application have social consequences. Table 1 offers some of the most relevant impacts of digitalization on the workforce.…”

“…The physical world and the digital world are getting closer, resulting in the fusion of physical-cybernetic systems 6 The role of human intervention changes from a skilled worker to a supervisor of services available in the network 7 The augmentation in connectivity, determined by the enormous boost in the volume of data of the last decade 8 A new class of suppliers will intensify their competition in the future. It is necessary to adapt the workforce to the new specific requirements of knowledge-based management and innovation in the context of digitalization: Labor, Creativity and innovation Source: Androniceanu et al (2020).…”

Forecast of Changes in Business Administration Driven by Digitalization

“…The binomial test was used to determine whether the number of significant Androniceanu, 2020). For the Educ1 hypothesis, it was examined whether attendance or modular study is more significant for the respondents.…”

“…In addition to the WEF 2020, other authors (Ahmad & Van Looy, 2020) and (Androniceanu, Georgescu, Tvaronavičienė, & Androniceanu, 2020) have dealt with the topic of digitalization and its changes in the corporate and academic world. This paper shows the changes induced by Industry 4.0 on business studies and their effects on the business world.…”