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Compensation or Substitution? Labour Market Effects of Technological and Structural Change

Uwe Blien () and Oliver Ludewig

Chapter Chapter 16 in Modelling Aging and Migration Effects on Spatial Labor Markets, 2018, pp 333-343 from Springer

Abstract: Abstract Technological progress can have contradictory effects on employment development. On the one hand there is a substitution effect, because the same product can be produced with less labour. On the other hand there is a compensating effect, because prices will be decreased and therefore product demand and also labour demand will be increased. In the article the relative strength of the two effects is discussed and a brief empirical analysis for Germany is given.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-319-68563-2_16

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DOI: 10.1007/978-3-319-68563-2_16

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