Technological progress

Dale Mortensen and Christopher Pissarides

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We generalize apparently contradictory results in the literature about the effect of exogenous technological progress on unemployment. We assume that new technology can be adopted either through creative job destruction or through onthe- job implementation at a cost. We show that there is a critical level of implementation cost where the effect of growth on employment switches from positive to negative at higher costs. In extensions of the model we show that gross job reallocation can increase at faster growth with no clear-cut effects on aggregate employment.

JEL-codes: J01 R14 (search for similar items in EconPapers)
Pages: 32 pages
Date: 1995-09
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http://eprints.lse.ac.uk/2085/ Open access version. (application/pdf)

Related works:
Working Paper: Technological Progress (1995)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:2085

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