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Technological Unemployment: A New View

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Author Info
Peter Matthews ()

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Abstract

This paper extends the now familiar Shapiro-Stiglitz (1984) model of labor market behavior to reconsider the controversial proposition that some forms of innovation have persistent displacement effects. In particular, it finds that when distinctions between random production failures and reduced effort level are difficult to draw, the adoption f new methods of production that compel more effort, break down more often and/or allow for closer supervision will sometimes induce technological joblessness. The possible magnitude of such dislocation, its welfare effects and the possibilities for invention are then discussed in detail.

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File URL: http://www.middlebury.edu/services/econ/repec/mdl/ancoec/0212.pdf
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Publisher Info
Paper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 0212.

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Length: 43 pages
Date of creation: Jun 2002
Date of revision:
Handle: RePEc:mdl:mdlpap:0212

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Related research
Keywords: labor discipline; technological change; displacement;

Other versions of this item:

Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rebitzer, James B, 1993. "Radical Political Economy and the Economics of Labor Markets," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1394-434, September. [Downloadable!] (restricted)
  2. Miles S. Kimball, 1989. "Labor Market Dynamics When Unemployment Is A Worker Discipline Device," NBER Working Papers 2967, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Shields, Michael P, 1989. "The Machinery Question: Can Technological Improvements Reduce Real Output?," Economica, London School of Economics and Political Science, vol. 56(222), pages 215-24, May. [Downloadable!] (restricted)
  4. Bulow, Jeremy I & Summers, Lawrence H, 1986. "A Theory of Dual Labor Markets with Application to Industrial Policy,Discrimination, and Keynesian Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 376-414, July. [Downloadable!] (restricted)
    Other versions:
  5. Peter Hans Matthews & Ivan T. Kandilov, 2002. "The Cost of Job Loss and the "New" Phillips Curve," Eastern Economic Journal, Eastern Economic Association, vol. 28(2), pages 181-202, Spring. [Downloadable!]
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