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Technology and employment in a vertically connected economy: a model and an empirical test

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  • Dosi, G.
  • Piva, M.
  • Virgillito, M. E.
  • Vivarelli, M.

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, G. & Piva, M. & Virgillito, M. E. & Vivarelli, M., 2019. "Technology and employment in a vertically connected economy: a model and an empirical test," GLO Discussion Paper Series 355, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:355
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    References listed on IDEAS

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    More about this item

    Keywords

    Innovation; disembodied and capital-embodied technological change; employment; jobcreation; 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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