New technologies, new work practices and the age structure of the workers

There is empirical evidence that suggests that both technology and new work practices are skill-biased. In this paper, we analyse whether they are also age-biased. Does the introduction of new technology and new work practices reduce the demand for older workers and increase the demand for younger workers? The cross-section estimates suggest that technology is age-biased towards young, low-skilled workers. However, after sweeping away time-invariant unobserved firm effects by using a fixed effect approach, most of the significant relationships disappear. This suggests that the significant cross-section results are driven by unobserved heterogeneity between firms and are not causal effects of technology and new work practices on the demand for workers in different age groups.