The Impact of TFP Growth on Steady-State Unemployment

Christopher Pissarides and ,
Authors registered in the RePEc Author Service: Giovanna Vallanti

No 5002, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Theoretical predictions of the impact of TFP growth on unemployment are ambiguous, and depend on the extent to which new technology is embodied in new jobs. We evaluate a model with embodied and disembodied technology, capitalization, and creative destruction effects by estimating the impact of TFP growth on unemployment in a panel of industrial countries. We find a large negative impact which implies that embodied technology and creative destruction play no role in the steady-state dynamics of unemployment. Capitalization effects explain some of the estimated impact but a part remains unexplained.

Keywords: Tfp growth; Unemployment; Creative destruction; Capitalization effect; Embodied technology (search for similar items in EconPapers)
JEL-codes: E24 J64 O51 O52 (search for similar items in EconPapers)
Date: 2005-04
New Economics Papers: this item is included in nep-dev, nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://cepr.org/publications/DP5002 (application/pdf)

Related works:
Journal Article: THE IMPACT OF TFP GROWTH ON STEADY-STATE UNEMPLOYMENT (2007)
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:cpr:ceprdp:5002

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP5002

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().