The impact of capital accumulation by asset types on labour demand and income distribution

This paper investigates whether the diffusion of tangible IT and CT capital and intangible capital asset
types has an impact on labour demand growth and the share of labour income in total income at the
industry and country level. The econometric analysis is derived from a Cobb-Douglas production function
taking empirical stylized facts into account. The effects of technical progress embodied in the various forms
of capital impact along inter-industry and intercountry production linkages, which are taken into account
by using global value chain indicators. The analysis is broken down to examine the influence on different
types of labour, including the dimensions of gender, age and educational attainment. Accumulation of
ICT assets have generally insignificant and in some cases small positive effects on labour demand and
income shares, though patterns differ across types of labour. Intangible assets show a positive relation
with respect to labour demand growth.