Investment-specific technical progress, capital obsolescence and job creation

Fernando del Río

Labour Economics, 2010, vol. 17, issue 1, 248-257

Abstract: This paper shows that faster disembodied technological progress - if it is investment-specific - might reduce job creation because the obsolescence cost of capital increases, which reduces the net return of a job. This effect could be called the obsolescence effect. It is also shown that the increase in the rate of decline of the U.S. relative price of investment - which can be used as a proxy for the rate of investment-specific technical progress - may have increased the obsolescence costs of capital, which might account for the observed fall in U.S. vacancy-unemployment ratios and job finding rates after the mid-seventies.

Keywords: Unemployment; Job; creation; Matching; Investment-specific; technical; progress; Obsolescence (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927-5371(09)00104-3
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:17:y:2010:i:1:p:248-257

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().