Technological Progress and Fair Compensation

Karol Szwagrzak (), Juan Moreno-Ternero and Lars Peter Østerdal
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Karol Szwagrzak: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark, https://www.cbs.dk/en/research/departments/department-economics/karol-szwagrzak

No 11-2026, Working Papers from Copenhagen Business School, Department of Economics

Abstract: Can everyone benefit from technological progress? We study this question in a stylized model where individuals contribute inputs to produce a good and then divide the market value of the output, compensating each individual for her contribution. In this context, technological progress enables a greater output for each input combination. We show that requiring that technological progress does not harm any individual, reducing her compensation, clashes with other basic distributive goals.

Keywords: Technological progress; Fair compensation; Technological monotonicity; Equity (search for similar items in EconPapers)
JEL-codes: D63 D70 D71 O33 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2026-08-03
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