Innovation and Employment: A Survey

Marco Vivarelli ()

No 2621, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: According to the "compensation theory", market forces should assure a complete compensation of the initial labour-saving impact of process innovations. In this paper a critique of this approach is proposed through a detailed survey of the theoretical and empirical literature on the subject. The general conclusion is that - although compensation is always working - the complete counter-balancing of dismissed workers cannot be assumed ex-ante.

Keywords: innovation; technological unemployment; compensation (search for similar items in EconPapers)
JEL-codes: J64 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino, nep-lab and nep-tid
Date: 2007-02
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