"Digital change is often said to lead to large-scale job losses. Using data from administrative sources in Germany, this study examines the extent to which adaptation to digital change has affected regional employment growth and disparities over the past decade. The analysis confirms previous research according to which increases in productivity coincide with regional job growth rather than decline. Incorporating various indicators of digital-ization and automation into a model of industry-specific regional job growth shows that local labour markets with very different characteristics – regions with strong manufacturing clusters on the one hand and large cities on the other – have achieved employment growth despite high automation exposure. While the study highlights regional differentials with respect to the adaptation to technological change, less prosperous regions may face a much greater challenge in realizing job creation potentials. The results argue against policy efforts aimed at 'protecting' jobs from digitalization and automation."

This work is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/).

Support: Digital