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Technological unemployment in industrial countries

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  • Horst Feldmann

Abstract

Using annual data on 21 industrial countries from the period 1985 to 2009 and a large number of controls, this paper empirically analyzes the impact of technological change on unemployment. As proxy for technological change, it uses the ratio of triadic patent families to population. According to the regression results, an increase in technological change substantially increases unemployment over 3 years. There is no long-term effect, though. The results are robust to both endogeneity and numerous variations in specifications. They support theoretical contributions according to which faster technological progress may increase unemployment, at least during a transition period. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Horst Feldmann, 2013. "Technological unemployment in industrial countries," Journal of Evolutionary Economics, Springer, vol. 23(5), pages 1099-1126, November.
    • Handle: RePEc:spr:joevec:v:23:y:2013:i:5:p:1099-1126
    DOI: 10.1007/s00191-013-0308-6
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    More about this item

    Keywords

    Innovation; Patents; Technological change; Unemployment; E24; J64; O33; O34;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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