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Innovation Diffusion, Employment and Wage Policy

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  • Englmann, Frank C

Abstract

Contrary to most writing in the field of evolutionary economics which have a strong micoreconomic flavor, here a macroeconomic evolutionary model will be presented in order to deal with the macroeconomic employment effect of technical change where there is just one old and one new technology. Several authors who favour an evolutionary approach to the theory of technical change share an optimistic view with respect to the macroeconomic employment effect of technical change. In the paper we are dealing with the question of whether this optimistic view is a necessary result of an evolutionary approach to technical change or rather of some other characteristic of the models used. It is shown that the evolutionary approach to technical change is not inherently optimistic or pessimistic with respect to the employment effects. Rather it is the labour market behaviour that will decide, whether the employment effects of technical change are positive, negligible or even negative.

Suggested Citation

  • Englmann, Frank C, 1992. "Innovation Diffusion, Employment and Wage Policy," Journal of Evolutionary Economics, Springer, vol. 2(3), pages 179-193, October.
  • Handle: RePEc:spr:joevec:v:2:y:1992:i:3:p:179-93
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    Cited by:

    1. David Haas, 2015. "Diffusion Dynamics and Creative Destruction in a Simple Classical Model," Metroeconomica, Wiley Blackwell, vol. 66(4), pages 638-660, November.
    2. David Haas, 2016. "The evolutionary traverse: a causal analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1173-1193, December.
    3. Sarkar, Jayati, 1998. " Technological Diffusion: Alternative Theories and Historical Evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 12(2), pages 131-176, April.
    4. Silverberg, Gerald, 1997. "Evolutionary modeling in economics : recent history and immediate prospects," Research Memorandum 008, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).

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