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Induced technology hypothesis. Acemoglu and Marx on deskilling (skill replacing) innovations

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  • Korkut Alp Ertürk

Abstract

The paper hypothesizes that the worldwide market-friendly political/institutional transformations of the early 1980s had an impact on the direction of technological change. Their crucial effect was to make an integrated global labor market politically feasible, which raised demand for what eventually became global value chains and production networks, requiring in turn the further development of IT to lower communication and information costs. IT investment and demand for high skills, driven up by the large set up costs of global networks, eventually stagnated once these networks were in place making the expansion of low-skill employment around the world less dependent on their services.

Suggested Citation

  • Korkut Alp Ertürk, 2021. "Induced technology hypothesis. Acemoglu and Marx on deskilling (skill replacing) innovations," Review of Social Economy, Taylor & Francis Journals, vol. 79(1), pages 3-24, January.
    • Handle: RePEc:taf:rsocec:v:79:y:2021:i:1:p:3-24
    DOI: 10.1080/00346764.2019.1650291
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