Technological progress and (un)employment development

"One of the key issues in economics is the explanation of unemployment and its variation across different economies. Modern mainstream macroeconomics refers to the effects of financial crises and to institutional structures and their variation across countries. However, unemployment within the...

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Main Authors: Blien, Uwe, Ludewig, Oliver
Institution:ETUI-European Trade Union Institute
Format: TEXT
Language:English
Published: Nürnberg 2016
IAB
Subjects:
Online Access:https://www.labourline.org/KENTIKA-19101477124919296599-Technological-progress-and-(un.htm
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author Blien, Uwe
Ludewig, Oliver
author_facet Blien, Uwe
Ludewig, Oliver
collection Library items
description "One of the key issues in economics is the explanation of unemployment and its variation across different economies. Modern mainstream macroeconomics refers to the effects of financial crises and to institutional structures and their variation across countries. However, unemployment within the European states varies nearly as much as between these countries. In the interior of a country, however, there are only minor differences in institutions. To solve this puzzle, we explain this variation of unemployment building on the regional industry composition and technological progress. It is shown formally that under general and standard preconditions the price elasticity of demand on product markets is decisive: Technological progress leads to an expansion of employment if product demand is elastic. It is accompanied, however, by shrinkage of employment if product demand is inelastic. A transition from the elastic into the inelastic range of the demand function for the most important product(s) can already suffice to plunge a region into crisis. In our empirical analysis we use industry level time series data on output, prices, employment and national income for Germany provided by the Federal Statistical Office. We estimate Marshallian type demand functions using an instrumental variables estimator to derive the price elasticities for different industries and link this information to the regional labour market performance of the respective industries and regions."
format TEXT
geographic Germany
id 19101477124919296599_8494394ec3a14cbc9829115418370e15
institution ETUI-European Trade Union Institute
is_hierarchy_id 19101477124919296599_8494394ec3a14cbc9829115418370e15
is_hierarchy_title Technological progress and (un)employment development
language English
physical 32 p.
Digital
publishDate 2016
publisher Nürnberg
IAB
spellingShingle Blien, Uwe
Ludewig, Oliver
industrial sector
labour market
technological change
unemployment
Technological progress and (un)employment development
thumbnail https://www.labourline.org/Image_prev.jpg?Archive=106188092436
title Technological progress and (un)employment development
topic industrial sector
labour market
technological change
unemployment
url https://www.labourline.org/KENTIKA-19101477124919296599-Technological-progress-and-(un.htm