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Technological Change and Income Distribution Dynamics

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  • David Andolfatto

    (Department of Economics, Simon Fraser University)

  • Eric Smith

Abstract

This paper explores the link between technological change and the dynamics of the earnings distribution and production. Technological change not only advances society's collective capability but also changes the relative productivities of its members. This latter effect establishes the likely winners and losers from advances in productive capabilities, provides a mechanism that can generate cyclical fluctuations in output as well as employment, and determines the evolution ofthe earnings distribution.

Suggested Citation

  • David Andolfatto & Eric Smith, 1999. "Technological Change and Income Distribution Dynamics," Working Papers 99001, University of Waterloo, Department of Economics, revised Dec 1999.
  • Handle: RePEc:wat:wpaper:99001
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