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Description:
Against the background of the existing theoretical and empirical evidence of skill-biased technological and organisational change, this paper investigates the effects of organisational change on labour demand between 1996 and 2004 using linked-employer-employee-data (LIAB) from the German Institute for Employment Research. By estimating dynamic labour demand functions for western and eastern Germany, we are able to show that the introduction of new work and/or production patterns has a positive effect on the overall employment level. In addition, we find significant shifts in labour demand at the expense of unskilled workers due to organisational change, while organisational change increases the demand for skilled workers.