Bank Technology: Productivity and Employment

70 Pages Posted: 30 Jul 2018

See all articles by Zifeng Feng

Zifeng Feng

Florida International University (FIU) - Department of Finance

Zhonghua Wu

Florida International University (FIU)

Date Written: July 29, 2018

Abstract

The impact of technology investment on bank production and employment is examined. Using a new bank-level technology spending dataset from 2000-2017, we estimate the parameters of a firm-level production function correcting for endogenous input choices. We document that technology input on average contributes about 12.85% to the increase in value-added output. We then show that the bank employment and tasks are positively correlated with their lagged technology spending in the cross-section, supporting the task-based framework of Acemoglu and Restrepo (2018). These results indicate that technology capital is highly productive and technology adoption generally lead to more employment at the firm-level.

Keywords: Technology, Productivity, Production, Task, Employment, Banks

Suggested Citation

Feng, Zifeng and Wu, Zhonghua, Bank Technology: Productivity and Employment (July 29, 2018). Available at SSRN: https://ssrn.com/abstract=3221334 or http://dx.doi.org/10.2139/ssrn.3221334

Zifeng Feng (Contact Author)

Florida International University (FIU) - Department of Finance ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

Zhonghua Wu

Florida International University (FIU) ( email )

University Park
11200 SW 8th Street
Miami, FL 33199
United States

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
118
Abstract Views
831
Rank
424,928
PlumX Metrics