TY - JOUR
T1 - The impact of TFP growth on steady-state unemployment
AU - Pissarides, Christopher A.
AU - Vallanti, Giovanna
PY - 2007/5
Y1 - 2007/5
N2 - Theoretical predictions of the impact of total factor productivity (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.
AB - Theoretical predictions of the impact of total factor productivity (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.
UR - https://www.webofscience.com/wos/woscc/full-record/WOS:000245507300009
UR - https://openalex.org/W2121640619
UR - https://www.scopus.com/pages/publications/34147134631
U2 - 10.1111/j.1468-2354.2007.00439.x
DO - 10.1111/j.1468-2354.2007.00439.x
M3 - Journal Article
SN - 0020-6598
VL - 48
SP - 607
EP - 640
JO - International Economic Review
JF - International Economic Review
IS - 2
ER -
