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Technology, Diffusion, Wages and Employment


  • Stoneman, Paul


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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  • Stoneman, Paul, 1981. "Technology, Diffusion, Wages and Employment," The Warwick Economics Research Paper Series (TWERPS) 190, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:190

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    References listed on IDEAS

    1. Michael Bruno & Jeffrey Sachs, 1982. "Energy and Resource Allocation: A Dynamic Model of the "Dutch Disease"," Review of Economic Studies, Oxford University Press, vol. 49(5), pages 845-859.
    2. Bruno, Michael, 1982. " Adjustment and Structural Change under Supply Shocks," Scandinavian Journal of Economics, Wiley Blackwell, vol. 84(2), pages 199-221.
    3. Michael Bruno & Jeffrey Sachs, 1982. "Energy and Resource Allocation: A Dynamic Model of the "Dutch Disease"," NBER Working Papers 0852, National Bureau of Economic Research, Inc.
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