The Economics of Technology and Employment
Theory and Empirical Evidence
The impact of technical change on employment is investigated in this important new book which offers a critical appraisal of how far current economic analysis and theory can deal with this key policy issue. The Economics of Technology and Employment addresses the impact of technical change on employment from both theoretical and empirical perspectives. After an analytical discussion of theoretical propositions and models put forward by classical and contemporary economists, Dr Vivarelli develops a model to examine the extent to which worker displacement due to technical progress can be offset by compensatory market forces. This model is tested using Italian and US aggregate time-series data. The theoretical discussion and empirical results are combined to demonstrate that the employment impact of labour saving technologies can only be partially counter-balanced by market forces and so economic policy measures could be necessary. This important and innovative volume will be welcomed by economists and policymakers as a major contribution to our theoretical understanding of employment, industrial innovation and technical change.
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What Reviewers Are Saying
'... the book covers in an interesting and useful way a wide range of issues, systematically connected with an enlarged assessment of the compensation theory.' -- P. Petit, Journal of Economics 'I commend this book most strongly to economists throughout the industrialized world since unemployment is the greatest social and economic problem confronting us today.' -- International Labour Review 'Vivarelli's book is an exceptionally valuable contribution for three reasons. First, it provides an excellent analysis and critique of classical and neoclassical theories of technical change and employment. Secondly, it extends this discussion to the contemporary theoretical debate. Finally, it develops a macroeconomic model to test the compensation theory against the recent evidence. This test is carried out both for a major European country - Italy - and for the USA. The results of this test are extremely interesting for theorists and even more importantly for policymakers... I commend this book most strongly to economists throughout the industrialized world since unemployment is the greatest social and economic problem confronting us today.' -- From the preface by Christopher Freeman, SPRU - Science and Technology Policy Research, University of Sussex, UK and Maastricht University, The Netherlands