Productivity Growth and Employment: Theory and Panel Estimates
AbstractTheoretical predictions of the effect of TFP growth on employment are ambiguous, anddepend on the extent to which new technology is embodied in new jobs. We estimate amodel for employment, wages and investment with an annual panel for the United States,Japan and Europe and find that TFP growth increases employment. For the United StatesTFP growth explains the trend change in unemployment. We evaluate the model and findthat creative destruction plays no part in aggregate unemployment dynamics. The model canexplain up to half of the estimated impact of growth on unemployment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0663.
Date of creation: Dec 2004
Date of revision:
Contact details of provider:
Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP
TFP growth; employment; creative destruction; capitalization effect; unemployment dynamics; embodied technology;
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
- O51 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gianluca Violante & Andreas Hornstein & Per Krusell, 2004. "A Quantitative Study of the Replacement Problem in Frictional Economies," 2004 Meeting Papers 64, Society for Economic Dynamics.
- MG. Ladu, 2005. "Growth and Employment: A survey on the Demand Side of the Labour Market," Working Paper CRENoS 200507, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Hornstein, Andreas & Krusell, Per & Violante, Giovanni L, 2005. "The Replacement Problem in Frictional Economies: An 'Equivalence Result'," CEPR Discussion Papers 5026, C.E.P.R. Discussion Papers.
- James Morley & Thomas King, 2003.
"In Search of the Natural Rate of Unemployment,"
Computing in Economics and Finance 2003
190, Society for Computational Economics.
- Den Haan, Wouter & Haefke, Christian & Ramey, Gary, 2004.
"Turbulence and Unemployment in a Job Matching Model,"
CEPR Discussion Papers
4765, C.E.P.R. Discussion Papers.
- Wouter J. den Haan & Christian Haefke & Garey Ramey, 2005. "Turbulence And Unemployment In A Job Matching Model," Journal of the European Economic Association, MIT Press, vol. 3(6), pages 1360-1385, December.
- Wouter J. Den Haan & Christian Haefke & Garey Ramey, 2004. "Turbulence and unemployment in a job matching model," Economics Working Papers 792, Department of Economics and Business, Universitat Pompeu Fabra.
- Wouter J. Den Haan & Christian Haefke & Garey Ramey, 2004. "Turbulence and Unemployment in a Job Matching Model," Working Papers 142, Barcelona Graduate School of Economics.
- den Haan, Wouter J. & Haefke, Christian & Ramey, Garey, 2004. "Turbulence and Unemployment in a Job Matching Model," IZA Discussion Papers 1403, Institute for the Study of Labor (IZA).
- Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2005.
"The Replacement Problem In Frictional Economies: A Near-Equivalence Result,"
Journal of the European Economic Association,
MIT Press, vol. 3(5), pages 1007-1057, 09.
- Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2005. "The replacement problem in frictional economies : a near equivalence result," Working Paper 05-01, Federal Reserve Bank of Richmond.
- Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2006.
"Technology-policy interaction in frictional labor markets,"
06-10, Federal Reserve Bank of Richmond.
- Andreas Hornstein & Per Krusell & Giovanni L. Violante, 2007. "Technology—Policy Interaction in Frictional Labour-Markets," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1089-1124.
- MG. Ladu, 2005. "Total Factor Productivity Growth and Employment: A Simultaneous Equations Model Estimate," Working Paper CRENoS 200506, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Olmo Silva, 2004. "Entrepreneurship: Can the Jack-of-All-Trades Attitude be Aquired?," CEP Discussion Papers dp0665, Centre for Economic Performance, LSE.
- Thomas B. King, 2005. "Labor productivity and job-market flows: trends, cycles, and correlations," Supervisory Policy Analysis Working Papers 2005-04, Federal Reserve Bank of St. Louis.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.