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Innovation and Employment: A Survey

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  • Vivarelli, Marco

    (Università Cattolica del Sacro Cuore)

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.

Suggested Citation

  • Vivarelli, Marco, 2007. "Innovation and Employment: A Survey," IZA Discussion Papers 2621, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2621
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    More about this item

    Keywords

    technological unemployment; compensation; innovation;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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