TY  - RPRT
        AU  - Gerten, Elisa
AU  - Beckmann, Michael
AU  - Kräkel, Matthias
        TI  - Information and Communication Technology, Hierarchy, and Job Design
        PY  - 2022/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15491
        UR  - https://www.iza.org/publications/dp15491
        AB  - In recent decades, information and communication technology (ICT) has been associated with far-reaching changes in the design of jobs. However, it still remains unclear whether these changes will lead to more centralization or more decentralization in firms. Previous literature on this debate has focused on a strict dichotomy between the two possible directions. In contrast, our theoretical and empirical analyses show that equipping employees with ICT leads to both more centralized and more decentralized job-design policies. 
This finding is particularly pronounced for executive employees, who are granted more work autonomy but also experience more control via stronger monitoring, while non-executive employees only experience more monitoring without receiving more work autonomy. Our theoretical setting is based on a modified principal-agent model. In our empirical approach we apply estimation models that account for both endogeneity and essential heterogeneity, thereby exploiting exogenous geographic variation in our instrumental variable.
        KW  - information and communication technology
KW  - centralization
KW  - decentralization
KW  - monitoring
KW  - working from home
KW  - marginal treatment effects
KW  - essential heterogeneity
KW  - instrumental variable
        ER  -