Advanced Digital Technologies in Unionized Firms

This work examines how workplace employee organizations causally affect the adoption of advanced digital technologies in Italy. It does so by using information from the survey “Rilevazione Imprese e Lavoro” conducted by the National Institute for Public Policy Analysis on a nationally representative sample of Italian firms in the non-agricultural private sector in 2018. It shows that workplace employee organizations increase the probability of advanced digitalization by around 15 percentage points per year, and the number of different technologies adopted by 0.41. The empirical strategy follows an IV approach that eliminates simultaneity bias and builds upon a lagged internal instrument combined with a NUTS-3 measure of altruism—namely, per capita blood donations. Results survive when cybersecurity is excluded from the analysis and prove robust when the internal instrument is left alone, combined with an index of tolerance or with propensity score matching.