Location of Repository

The impact of TFP growth on steady-state unemployment

By Christopher Pissarides and Giovanna Vallanti

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. In econometric estimates with a panel of industrial countries we find a large negative impact of TFP growth on unemployment, 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

Topics: HN Social history and conditions. Social problems. Social reform, HD Industries. Land use. Labor
Year: 2007
DOI identifier: 10.1111/j.1468-2354.2007.00439.x
OAI identifier: oai:eprints.lse.ac.uk:3608
Provided by: LSE Research Online
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://www.blackwellpublishing... (external link)
  • http://eprints.lse.ac.uk/3608/ (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.