Mortensen, Dale T and Pissarides, Christopher (1995) Technological progress. CEP discussion paper; CEPDP0264, 264. Centre for Economic Performance, London School of Economics and Political Science, London, UK.
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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.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 1995 D.T.Mortensen and C.A.Pissarides|
|Library of Congress subject classification:||T Technology > T Technology (General)
H Social Sciences > HD Industries. Land use. Labor
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
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