EconPapers    
Economics at your fingertips  
 

The Impact of Disembodied Technological Progress on Unemployment

Julien Prat

Review of Economic Dynamics, 2007, vol. 10, issue 1, 106-125

Abstract: This paper studies the relationship between disembodied technological progress and unemployment in a standard search-matching model. We find that the sign of the correlation crucially depends on the degree of idiosyncratic uncertainty. The analysis uncovers a new effect whereby an increase in growth intensifies the endogenous rate of job separation because it raises the workers' outside option. For plausible parameter values, the outside option effect outweighs the capitalization effect, so that disembodied technological progress increases the rate of unemployment. (Copyright: Elsevier)

Keywords: Growth; Unemployment; Search-matching; Uncertainty (search for similar items in EconPapers)
JEL-codes: E24 J64 O40 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://dx.doi.org/10.1016/j.red.2006.09.003
Access to full texts is restricted to ScienceDirect subscribers and institutional members. See http://www.sciencedirect.com/ for details.

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:red:issued:06-11

Ordering information: This journal article can be ordered from
https://www.economic ... ription-information/

DOI: 10.1016/j.red.2006.09.003

Access Statistics for this article

Review of Economic Dynamics is currently edited by Loukas Karabarbounis

More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2025-03-19
Handle: RePEc:red:issued:06-11