Theoretical predictions of the impact of TFP growth on unemployment are ambiguous, and depend on the extent to which new technology is embodied in new jobs. We evaluate a model with embodied and disembodied technology, capitalization, and creative destruction effects by estimating the impact of TFP growth on unemployment in a panel of industrial countries. We find a large negative impact which implies that embodied technology and creative destruction play no role in the steady-state dynamics of unemployment. Capitalization effects explain some of the estimated impact but a part remains unexplained.

The Impact of TFP Growth on Steady-State Unemployment / Christopher, Pissarides; Vallanti, Giovanna. - In: INTERNATIONAL ECONOMIC REVIEW. - ISSN 0020-6598. - 48:2(2007), pp. 607-640. [10.1111/j.1468-2354.2007.00439.x]

The Impact of TFP Growth on Steady-State Unemployment

VALLANTI, GIOVANNA
2007

Abstract

Theoretical predictions of the impact of TFP growth on unemployment are ambiguous, and depend on the extent to which new technology is embodied in new jobs. We evaluate a model with embodied and disembodied technology, capitalization, and creative destruction effects by estimating the impact of TFP growth on unemployment in a panel of industrial countries. We find a large negative impact which implies that embodied technology and creative destruction play no role in the steady-state dynamics of unemployment. Capitalization effects explain some of the estimated impact but a part remains unexplained.
TFP growth; unemployment; creative destruction; capitalization effect; embodied technology
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11385/7541
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