Chapter 23: The digital transition of the economy and its consequences for the labour market
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This chapter addresses the reconfiguration of the labour market led by the digitalization of the economy. It takes stock of major contributions to the state-of-the-art research to show how automation, artificial intelligence and the platform economy are affecting job content, business models and employment features. It then focuses on the institutional and policy response to digitalization. While standard economic analysis tends to neglect the role played by policies and institutions, comparative studies can shed some light on institutional differences and adaptational paths. To this aim, we use two country experiences to compare the politics of digitalization in Germany and Italy. We discuss recent changes in national labour market regulation, social policy and educational systems for addressing the digital challenge in these different contexts and explore the influence of technological change on the German and Italian growth models.

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