Abstract
This paper uses the longitudinal and nationally representative data from Statistics Canada’s Workplace and Employee Survey to examine the distinct effects of Information and Communication Technology (ICT) on the decentralization of decision rights. I find that decentralization in the workplace (defined as the case when non-managerial employees can normally plan their own work) is more likely when database software is used (which proxies for the reduction of learning cost) but is less likely when communication system is used (which proxies for the reduction of communication cost). These results are consistent with the predictions of Garicano (2000, Journal of Political Economy).
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