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Innovation and Employment: A Survey

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Author Info
Marco Vivarelli () (Università Cattolica Piacenza, CSGR Warwick, Max Planck Institute of Economics Jena and IZA)

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Abstract

According to the "compensation theory", market forces should assure a complete compensation of the initial labour-saving impact of process innovations. In this paper a critique of this approach is proposed through a detailed survey of the theoretical and empirical literature on the subject. The general conclusion is that - although compensation is always working - the complete counter-balancing of dismissed workers cannot be assumed ex-ante.

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File URL: ftp://repec.iza.org/RePEc/Discussionpaper/dp2621.pdf
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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2621.

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Length: 22 pages
Date of creation: Feb 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2621

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Related research
Keywords: innovation; technological unemployment; compensation;

Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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  1. Rupert Harrison & Jordi Jaumandreu & Jacques Mairesse & Bettina Peters, 2008. "Does Innovation Stimulate Employment? A Firm-Level Analysis Using Comparable Micro-Data from Four European Countries," NBER Working Papers 14216, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Harrison, Rupert & Jaumandreu, Jordi & Mairesse, Jacques & Peters, Bettina, 2005. "Does innovation stimulate employment? A firm-level analysis using comparable micro data on four European countries," MPRA Paper 1245, University Library of Munich, Germany. [Downloadable!]
  3. Narula,Rajneesh, 2004. "Understanding absorptive capacities in an "innovation systems" context: consequences for economic and employment growth," Research Memoranda 004, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
    Other versions:
  4. Persefoni Tsaliki, 2008. "Economic development, human capital and technical change: the question of machinery revisited," International Review of Economics, Springer, vol. 55(4), pages 363-371, December. [Downloadable!] (restricted)
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This page was last updated on 2009-11-9.

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