Uneven Technical Progress and Unemployment

Arbeitspapier

In a two-sector-economy with real wage rigidity, we examine how technical progress in one sector affects aggregate unemployment. We show that aggregate unemployment decreases for uneven technical change in the case of Cobb-Douglas production functions. For every type of technical progress there are also elasticities of substitution in production and utility functions leading to a rise in unemployment. Moreover, we identify polar cases when unemployment strongly decreases.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 478

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Computable and Other Applied General Equilibrium Models ; Oligopoly and Other Imperfect Markets ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General
• Subject: uneven technical progress ; elasticities of substitution ; unemployment ; Theorie der Arbeitslosigkeit ; Technischer Fortschritt ; Mehr-Sektoren-Modell ; Faktorsubstitution ; Lohnrigidität ; Beschäftigungseffekt ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gersbach, Hans ; Schniewind, Achim
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/21479
• Last update: 10.03.2025, 11:42 AM CET