Do technological improvements in the manufacturing sector raise or lower employment?
Yongsung Chang () and
No 05-02, Working Paper from Federal Reserve Bank of Richmond
We find that technology's effect on employment varies greatly across manufacturing industries. Some industries exhibit a temporary reduction in employment in response to a permanent increase in TFP, whereas far more industries exhibit an employment increase in response to a permanent TFP shock. This raises serious questions about existing work that finds that a labor productivity shock has a strong negative effect on employment. There are tantalizing and interesting differences between TFP and labor productivity. We argue that TFP is a more natural measure of technology because labor productivity reflects shifts in the input mix as well as in technology.
Keywords: Employment; Business cycles (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
http://www.richmondfed.org/publications/research/w ... /2005/pdf/wp05-2.pdf (application/pdf)
Journal Article: Do Technological Improvements in the Manufacturing Sector Raise or Lower Employment? (2006)
Working Paper: Do technological improvements in the manufacturing sector raise or lower employment? (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedrwp:05-02
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Paper from Federal Reserve Bank of Richmond Contact information at EDIRC.
Bibliographic data for series maintained by ().