Regarding single aspects of subjective job quality, employees working in more digitalised occupations are found to report on average higher satisfaction with working hours and earnings, and lower levels of stress due to tight schedules. The higher the degree of digitalisation, the higher is the employee's general job satisfaction on average for general perceived occupational stress, we find no significant association. The results indicate that digitalisation is predominantly beneficial but also unfavourable in a few other respects for employees' subjective job quality. We control the association for compositional effects in the workforce, as well as for the moderating effect of perceived job insecurity. Digitalisation is approximated by substitution potentials of occupations. Subjective job quality is operationalised with regards to job satisfaction and perceived occupational stress in general, and ten aspects of job quality in detail. Our sample includes n = 1541 employees aged 40-65 years who are subject to social insurance contributions. Analyses are based on the German Ageing Survey 2014. While existing literature mainly focusses on objective job quality, this study asks if and how digitalisation is associated with employees' subjective job quality in the second half of working life in Germany. Since digitalisation alters occupational task profiles via automation processes, job quality is also likely to be affected. This article is an original contribution in answering the claims for more in-depth research on the links between employment variation and work transformations due to technological change. The increasing constraints on working conditions from innovation and information and communication technology use call for regulation setting. Our results suggest that more consideration should be given to the impact of technology diffusion on job quality. Furthermore, our study highlights the heterogeneity of innovation diffusion effects according to work organization’s practices. We observe that new technology adoption is generally associated with better employment quality for workers in some ways, but, simultaneously, it leads to higher physical constraints and work-time intensity. Based on the European Working Conditions Survey (EWCS) (2010), econometrics models identify at employee-level the combined influence of innovation with work organization practises on several job quality dimensions. This article investigates the effect of new technology adoption on job quality and working conditions. However, few empirical works explicitly study the transformative role of new technology adoption in the qualitative dimensions of jobs. Most studies on employment and innovation focus on the impacts of innovation on employment variation and turnover. This article contributes to better understanding the relations between innovation and the evolution of working conditions and employment quality.
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