Adjusting to a New Technology: Experience and Training

Elhanan Helpman and Antonio Rangel ()

No 1930, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: In this paper we study how aggregate output responds to the arrival of a new General Purpose Technology (GPT) by looking at adjustment mechanisms that operate through labour markets. We show that under a wide set of circumstances the arrival of a new GPT that raises long-run output can trigger a recession in the short run. Furthermore, we characterize features of the GPT that produce a cyclical adjustment path. An initial recession occurs whenever a higher education level is required to operate the new GPT. But a recession can also occur when the new GPT has lower educational requirements. A cyclical adjustment path is more likely when inexperienced workers are less productive with the new technology and the faster productivity rises with experience in the new sector.

Keywords: experience; New Technology; output adjustment; Training (search for similar items in EconPapers)
JEL-codes: O30 (search for similar items in EconPapers)
Date: 1998-08
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Citations: View citations in EconPapers (41)

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Related works:
Journal Article: Adjusting to a New Technology: Experience and Training (1999)
Working Paper: Adjusting to a New Technology: Experience and Training (1998)
Working Paper: Adjusting to a New Technology: Experience and Training (1998)
Working Paper: Adjusting to a New Technology: Experience and Training (1998)
Working Paper: Adjusting to a New Technology: Experience and Training (1998)
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