Technology Adoption and Employment in Less Developed Countries: A Mixed-Method Systematic Review

Abstract

The implications of technology adoption for productivity, income and welfare have been studied widely in the context of less developed countries (LDCs). In contrast, the relationship between technology adoption and employment has attracted less interest. This systematic review evaluates the diverse yet sizeable evidence base that has remained below the radars of both reviewers and policy makers. We map the qualitative and empirical evidence and report that the effect of technology adoption on employment is skill-biased and more likely to be observed when technology adoption favour product innovation as opposed to process innovation. Technology adoption is also less likely to be associated with employment creation when: (i) the evidence is related to farm employment as opposed to firm/industry employment; (ii) the evidence is related to lowincome countries as opposed lower-middle-income or mixed countries; and (iii) the evidence is based on post-2001 data as opposed to pre-2001 data. There is also qualitative evidence indicating that international trade, weak forward and backward linkages and weaknesses in governance and labour-market institutions tend to weaken the jobcreating effects of technology adoption. We conclude by calling for compilation of betterquality survey data and further attention to sources of heterogeneity in modeling the relationship between technology adoption and employment in LDCs.

Diffusion of Innovations and Labor Market Challenges: A Multiple Case Study from Angola

“…Finally, the logic for the study and methodological support for the data collection and analysis is provided. (Aissaoui, 2017;Tayo et al, 2015;Ugur & Mitra, 2017). Other researchers have also examined the linkages between ICTs and the promotion of individual or community quality of life (Adera et al, 2014;Diga et al, 2013;Kariuki, 2015;Saidi & Douglas, 2017).…”

“…The African realization of the Millennium Development Goals (MDGs) did not show promising results for Africa's socioeconomic development (United Nations Development Programme [UNDP], 2014); yet, researchers reported that Africa has exhibited progressing results in terms of information and communications technology (ICT) adoption (Oluwatayo & Ojo, 2018). Nevertheless, scholars argue that African developing countries still register a gap in the relationship between general ICT diffusion and innovation and socioeconomic growth and development (Asongu, Biekpe, & Tchamyou, 2019;Evans, 2019;Tayo, Thompson, & Thompson, 2015;Ugur & Mitra, 2017). For some, the impact assessment of ICT adoption toward socioeconomic development is based on economic insufficiencies among categories of people and digital divides which are often defined as differences between access and use of ICT infrastructures mostly among impoverished sub-Saharan African populations (Aissaoui, 2017;Penard, Poussing, Mukoko, & Piaptie, 2015).…”

“…Researchers pointed to technology and innovation as the catalyst elements of a developing country's economic growth because they induce social advancements (Shiferaw & Hailu, 2016;Silva, Badasyan, & Busby, 2018;Ugur & Mitra, 2017). Yet, Vivarelli (2014) reported that the most massive technological unemployment in history had not occurred since the first industrial revolution.…”

“…Yet, Vivarelli (2014) reported that the most massive technological unemployment in history had not occurred since the first industrial revolution. Faced with many controversies, researchers argued that technology is far less likely to be linked to job creation in the long run (Reiff, 2015;Ugur & Mitra, 2017). Additionally, evidence indicated that technology adoption could be biased and for such reason it could displace unskilled workers, causing further joblessness (Amavilah, 2016).…”

“…Chapter 2: Literature Review While many sub-Saharan African countries described technology and innovations as the elements best used to combat the labor market challenges (Silva et al, 2018;Ugur & Mitra, 2017), more work is required to understand the different barriers to rapidly diffused innovation and technology which may also cause harm in the form of social disruption in local communities (Kianian et al, 2015;Matthews, 2017;Rivers et al, 2015). These contrasts drove governments in sub-Saharan Africa to stall in the diffusion of innovation needed in local communities to spur on economic development (Dutz et al, 2014;Gudmundsdottir, 2010).…”