Upstairs, downstairs : computer-skill complementarity and computer-labor substitution on two floors of a large bank

42 Pages·2000·1.3 MB·English

by  Autor, David H

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DEWEY
Massachusetts Institute of Technology
Department of Economics
Working Paper Series
UPSTAIRS, DOWNSTAIRS: COMPUTER-SKILL
COMPLEMENTARITY AND COMPUTER-LABOR
SUBSTITUTION ON TWO FLOORS OF A LARGE BANK
NBER
David H. Autor, MIT,
NBER
Frank Levy, Harvard,
Richard Murnane, MIT
J.
Working Paper 00-23
September 2000
Room
E52-251
50 Memorial Drive
MA
Cambridge, 02142
This paper can be downloaded without charge from the
Social Science Research Network Paper Collection at
http://papers.ssrn,com/paper.taf?abstract id=244428
MASSACHUSETTS INSTITUTE
OFTECHNOLOGY
OCT 3 2000
LIBRARIES
Massachusetts Institute of Technology
Department of Economics
Working Paper Series
UPSTAIRS, DOWNSTAIRS: COMPUTER-SKILL
COMPLEMENTARITY AND COMPUTER-LABOR
SUBSTITUTION ON TWO FLOORS OF A LARGE BANK
NBER
David H. Autor, MIT,
NBER
Frank Levy, Harvard,
Richard Murnane, MIT
J.
Working Paper 00-23
September 2000
Room
E52-251
50 Memorial Drive
MA
Cambridge, 02142
This paper can be downloaded without charge from the
Social Science Research Network Paper Collection at
http://papers.ssrn.com/paper.taf?abstract id=244428

Upstairs, Downstairs: Computer-Skill Complementarity and
Computer-Labor Substitution on Two Floors ofa Large Bank
David H. Autor, Frank Levy, and Richard J. Murnane*
August 29, 2000
Abstract
We describe how a single technological innovation, the introduction ofimage processing of
checks, led to distinctly different changes in the structure ofjobs in two departments ofa large
bank overseen by one group ofmanagers. In the downstairs deposit processing department,
image processing ledto the substitution ofcomputers for high school educated labor in
accomplishing core tasks and in greater specialization in thejobs that remained. In the upstairs
exceptions processing department, image processing led to the integration oftasks, with an
associated increase in the demand for particular skills. The case illustrates the interdependence of
technological change and organizational change. It suggests that 'seeing the whole picture' and
associated conceptual and problem-solving skills are made more valuable by information
technologies. Finally, it underscores that the short-term consequences oftechnological changes
may depend importantly on regulatory forces.
* MIT Department ofEconomics andNBER, MIT Department ofUrban Studies andPlanning, and
Harvard Graduate School ofEducation andNBER respectively. The Russell Sage and Sloan Foundations
supportedthe research on which this paper is based. The authors can be reached atdautor(5),mit,edu,
fievvfajmit.edu and Richard Murnane(5),harvard.edu
,