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http://dx.doi.org/10.5762/KAIS.2011.12.1.181

Technological Progress and Job Creation  

Choi, Chang-Kon (Department of Economics, Chonbuk national University)
Yi, Sun-Kyung (Department of Economics, Chonbuk national University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.12, no.1, 2011 , pp. 181-187 More about this Journal
Abstract
This paper deals with the job creation effect of economic growth by focusing on the types of technological progress. The hypothesis is that labor-saving technological change may create less job than capital-saving or factor-neutral ones. The hypothesis is proved theoretically using an equilibrium model of labor market. Empirically, first, a simulation experiment is performed to check the hypothesis empirically and confirms it. Secondly, we look at labor/capital ratio since it may be affected by the type of technological improvement. One important policy implication is that job creation effect of economic growth depends on the structure of labor supply as well as that of labor demand.
Keywords
Type of technology; Labor-saving technology; Capital-saving technology; Job creation; Labor/capital ratio;
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