Adjusting to a New Technology: Experience and Training

Elhanan Helpman and Antonio Rangel ()

No 6551, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper we study how aggregate output responds to the arrival of a new General Purpose Technology (GPT) by looking at adjustment mechanisms that operate through labor markets. We show that under a wide set of circumstances the arrival of a new GPT that raises long-run output can trigger a recession in the short-run. Furthermore, we characterize features of the GPT that produce a cyclical adjustment path. An initial recession occurs whenever a higher education level is required to operate the new GPT. But a recession can also occur when the new GPT has lower educational requirements. A cyclical adjustment path is more likely when inexperienced workers are less productive with the new technology and the faster productivity rises with experience in the new sector.

JEL-codes: O30 (search for similar items in EconPapers)
Date: 1998-05
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Published as Journal of Economic Growth, Vol. 4, no. 4 (December 1999): 359-383

Downloads: (external link)
http://www.nber.org/papers/w6551.pdf (application/pdf)

Related works:
Journal Article: Adjusting to a New Technology: Experience and Training (1999)
Working Paper: Adjusting to a New Technology: Experience and Training (1998)
Working Paper: Adjusting to a New Technology: Experience and Training (1998)
Working Paper: Adjusting to a New Technology: Experience and Training (1998)
Working Paper: Adjusting to a New Technology: Experience and Training (1998)
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:nbr:nberwo:6551

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w6551

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().