ZEW Study on Labour 4.0 – Opportunities and Challenges for Luxembourg

The Centre for European Economic Research (ZEW) and the Institute for Social Research and Social Economy (iso) conducted a study on the opportunities and challenges that come with increasing digitalisation and the way they influence work in Luxembourg. The study was commissioned by the Ministry of Labour, Employment and the Social and the Solidarity Economy, the Chamber of Commerce and the Chambre des Salariés in Luxembourg. On 4 May 2018, ZEW and iso presented the study “Arbeiten 4.0 – Chancen und Herausforderungen für Luxemburg” (Labour 4.0 – Opportunities and Challenges for Luxembourg) in the presence of Nicolas Schmit, Luxembourg Minister for Labour, Employment and the Social and the Solidarity Economy. Professor Dr. Irene Bertschek, head of the ZEW Research Department “Digital Economy”, represented the institute at the event.

Digitalisation is a key driver of innovation and productivity. At the same time, it is changing the world of work in multiple ways. Developments in the field of information and communication technologies (ICT) such as mobile internet, increasing computing and storage capacity, the availability and processing of large volumes of data, as well as artificial intelligence, are increasing both the digitisation and interconnectedness of production and work processes. Moreover, they are also changing the way how people work, the requirements that workers must meet, as well as task structures of jobs.

The study aims to provide insights into the development of digitalisation as well as its implications for the world of work, and to discuss the opportunities and challenges that arise in the context of economic and labour market structures in Luxembourg. Within the framework of the study, the researchers analysed the effects of digitalisation on work contents and work organisation, as well as the social aspects of Labour 4.0 and the implications for work quality and health. Further aspects discussed in the study include current technological developments acting as drivers of digitalisation, the implications of the digital world of work with regard to social security systems and the framework conditions for fiscal policies. That way, the study opens up new perspectives for representatives from politics, economics and social institutions in Luxembourg, whilst strengthening the national dialogue on social issues.