Description
The impact of technical change on employment is investigated in this book which offers a critical appraisal of how current economic theory addresses this key policy issue. After an analytical discussion of theoretical propositions and models put forward by classical and contemporary economists, the book develops a model which examines the extent to which worker displacement due to technical progress can be offset by compensatory market forces. This model is tested using Italian and US aggregate time. The theoretical discussion and empirical results are combined to demonstrate that the employment impact of labour saving technologies can only be partially counter-balanced by market forces and so economic policy measures are necessary.
