Technology, Diffusion, Wages and Employment
In this paper we analyse the impact of new technology on employment. The paper allows for compensation effects by using a two-sector representation of technology. linking prices to costs and demand to incomes. Technology is diffused slowly rather than immediately. The time path of employment is shown to depend on the time path of wages, the speed of diffusion and the characteristics of the technology. Two specific wage regimes are investigated in detail. The results suggest that there should be no presumption that new technology will always cause unemployment.
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|Date of creation:||1981|
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