Digitalisation, jobs and convergence in Europe: strategies for closing the skills gap

22 August 2016

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The pace of technological change is arguably faster than ever before, but while new technologies are diffusing at a faster pace, the benefits of these technologies have seemingly not been widely shared. Recent aggregate productivity growth has been sluggish compared to the early stages of the digital revolution, median wages have decoupled from productivity growth, and income convergence has faltered.

In a new report for the European Commission, Carl Frey and Thor Berger look at the polarisation of the job market due to the decline in middle-skilled jobs, the impact of automation, the types and numbers of new jobs being created and the digital skills shortage affecgting some EU countries. Substantial investment and changes to education and employment policies are needed, they say, to ensure the benefits of digital technologies are widely shared.