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Embodied and disembodied technological change: the sectoral patterns of job-creation and job-destruction

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  • Dosi, Giovanni

    (Institute of Economics, Scuola Superiore Sant’Anna, Pisa)

  • Piva, Mariacristina

    (Department of Economic Policy, Università Cattolica del Sacro Cuore, Piacenza)

  • Virgillito, Maria Enrica

    (Department of Economic Policy, Università Cattolica del Sacro Cuore, Milano)

  • Vivarelli, Marco

    (UNU-MERIT, Department of Economic Policy, Università Cattolica del Sacro Cuore, Milano, and IZA, Bonn)

Abstract

This paper addresses, both theoretically and empirically, the sectoral patterns of job creation and job destruction in order to distinguish the alternative effects of embodied vs disembodied technological change operating into a vertically connected economy. Disembodied technological change turns out to positively affect employment dynamics in the "upstream'' sectors, while expansionary investment does so in the "downstream'' industries. Conversely, the replacement of obsolete capital vintages tends to exert a negative impact on labour demand, although this effect turns out to be statistically less robust.

Suggested Citation

  • Dosi, Giovanni & Piva, Mariacristina & Virgillito, Maria Enrica & Vivarelli, Marco, 2019. "Embodied and disembodied technological change: the sectoral patterns of job-creation and job-destruction," MERIT Working Papers 2019-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2019020
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    More about this item

    Keywords

    Innovation; disembodied and capital-embodied technological change; employment; job-creation; job-destruction; sectoral interdependencies;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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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