Impact of Technology on Wages and Productivity in Singapore

September 6, 2018

Technological advances have been key in raising sustainable income levels over the longer-term, but their potential adverse distributional effects in relation to wage growth and employment prospects can be a cause for concern. In the case of Singapore, this study shows that greater information and communication technology (ICT) adoption led to real productivity growth and higher wages. Also, the effects of technology on wage growth is more pronounced in the services sector. Meanwhile, higher skilled workers benefitted more from greater ICT utilization, but it is less evident for low-skilled workers.

Going forward, the emergence of new digital technologies will likely enhance prospects of higher-skilled workers in Singapore, particularly in the services sector. Continued investments in skills training and upgrading are essential to ensure that the benefits of these technologies can be fully reaped. At the same time, policies should also ensure that wages, employment, and overall well-being of lower-skilled workers are prioritized.

2018-09-06T16:07:00+00:00

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