The project aims to study the role of new information and communication technology (ICT) in the evolution of wage inequality and labour shares in Germany using micro-level data on employees and employers. Computer-related technological progress has dramatically changed the nature of work and it is considered to be one driving force behind the polarization of employment and the increase in wage inequality in many countries. Falling ICT prices, driving the reduction in the relative cost of capital, are also seen as an important explanation for the decline in labour shares within many countries and industries. The study complements the nascent strand of literature that documents firm heterogeneity in labour shares, and provide novel evidence on how adoption of ICT may influence labour shares and wages across occupations within firms.