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The impact of technological progress on labour markets: policy challenges

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  • Maarten Goos

Abstract

This paper gives an overview of current thinking by economists about the consequences of ongoing technological progress for labour markets, and discusses policy implications. In economics, the impact of technological progress on labour markets is understood by the following two channels: (i) the nature of interactions between differently skilled workers and new technologies affecting labour demand and (ii) the equilibrium effects of technological progress through consequent changes in labour supply and product markets. The paper explains how the ongoing Digital Revolution is characterized by a complex interplay between worker skills and digital capital in the workplace, and consequent changes in job mobility for workers and in output prices affecting consumer demand for goods and services. In particular, it explains how current worker–technology interactions and the equilibrium effects they entail combine to create economy-wide job polarization with winners and losers from ongoing technological progress. The paper therefore concludes by discussing a set of policy interventions to ensure that the benefits of the Digital Revolution are broadly shared.

Suggested Citation

  • Maarten Goos, 2018. "The impact of technological progress on labour markets: policy challenges," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 34(3), pages 362-375.
    • Handle: RePEc:oup:oxford:v:34:y:2018:i:3:p:362-375.
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    File URL: http://hdl.handle.net/10.1093/oxrep/gry002
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    Cited by:

    1. Belloc, Filippo & Burdin, Gabriel & Cattani, Luca & Ellis, William & Landini, Fabio, 2022. "Coevolution of job automation risk and workplace governance," Research Policy, Elsevier, vol. 51(3).
    2. Richard Fabling & Arthur Grimes, 2019. "Ultra-fast broadband, skill complementarities, gender and wages," Working Papers 19_23, Motu Economic and Public Policy Research.
    3. Thanos Fragkandreas, 2022. "Three Decades of Research on Innovation and Inequality: Causal Scenarios, Explanatory Factors, and Suggestions," Working Papers 60, Birkbeck Centre for Innovation Management Research, revised Feb 2022.
    4. Ugur, Mehmet, 2024. "Innovation, market power and the labour share: Evidence from OECD industries," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    5. Michael MITSOPOULOS & Theodore PELAGIDIS, 2021. "Labor Taxation And Investment In Developed Countries. The Impact On Employment," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 13-31, June.
    6. Oussama Chemlal & Wafaa Benomar, 2024. "The Technological Impact on Employment in Spain between 2023 and 2035," Forecasting, MDPI, vol. 6(2), pages 1-30, April.
    7. Hang, Leiming & Lu, Wei & Ge, Xiaowei & Ye, Bin & Zhao, Zhiqi & Cheng, Fangfang, 2024. "R&D innovation, industrial evolution and the labor skill structure in China manufacturing," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    8. Mark Vincent T. Cortez & Nancy S. Doloriel, 2023. "Operational Issues of Marketing Agricultural Products in Agusan Del Sur: A Trifocal Perspective," Journal of Agriculture and Crops, Academic Research Publishing Group, vol. 9(3), pages 323-328, 07-2023.
    9. Anderton, Robert & Jarvis, Valerie & Labhard, Vincent & Morgan, Julian & Petroulakis, Filippos & Vivian, Lara, 2020. "Virtually everywhere? Digitalisation and the euro area and EU economies," Occasional Paper Series 244, European Central Bank.
    10. Belloc, Filippo & Burdin, Gabriel & Landini, Fabio, 2022. "Robots, Digitalization, and Worker Voice," GLO Discussion Paper Series 1038, Global Labor Organization (GLO).
    11. Tan, Si Ying & Taeihagh, Araz & Tripathi, Abhas, 2021. "Tensions and antagonistic interactions of risks and ethics of using robotics and autonomous systems in long-term care," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    12. Benjamin Schneider & Hillary Vipond, 2023. "The Past and Future of Work: How History Can Inform the Age of Automation," CESifo Working Paper Series 10766, CESifo.
    13. Schneider, Benjamin & Vipond, Hillary, 2023. "The past and future of work: how history can inform the age of automation," Economic History Working Papers 119282, London School of Economics and Political Science, Department of Economic History.
    14. Monica Mihaela Maer Matei & Cristina Mocanu & Ana Maria Zamfir & Anamaria Nastasa, 2023. "Implications of Digitalisation on Skill Needs in a Sustainable Economy," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(S17), pages 1115-1115, November.
    15. Malakhova E.V. & Garnov A.P. & Kornilova I.M., 2018. "Digital Economy, Information Society and Social Challenges in the Near Future," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 576-586.
    16. Drydakis, Nick, 2024. "Reducing the Gender Digital Divide Amongst Immigrant Entrepreneurs," IZA Discussion Papers 17275, Institute of Labor Economics (IZA).
    17. Belloc, Filippo & Burdin, Gabriel & Landini, Fabio, 2020. "Robots and Worker Voice: An Empirical Exploration," IZA Discussion Papers 13799, Institute of Labor Economics (IZA).
    18. Parteka, Aleksandra & Wolszczak-Derlacz, Joanna & Nikulin, Dagmara, 2024. "How digital technology affects working conditions in globally fragmented production chains: Evidence from Europe," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    19. Filippo Belloc & Gabriel Burdin & Fabio Landini, 2023. "Advanced Technologies and Worker Voice," Economica, London School of Economics and Political Science, vol. 90(357), pages 1-38, January.
    20. Jasmine Mondolo, 2022. "The composite link between technological change and employment: A survey of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1027-1068, September.
    21. Alvarelhão, Ana & Resende, Joana & Carneiro, Anabela, 2024. "Employment and wage dynamics in the electricity sector: Evidence from Portugal 2002–2020," Energy Economics, Elsevier, vol. 130(C).
    22. Badran, Mona Farid, 2019. "Technological Change and its Impact on the Labor Market in Egypt," 2nd Europe – Middle East – North African Regional ITS Conference, Aswan 2019: Leveraging Technologies For Growth 201735, International Telecommunications Society (ITS).
    23. Kerstin Hotte & Melline Somers & Angelos Theodorakopoulos, 2022. "Technology and jobs: A systematic literature review," Papers 2204.01296, arXiv.org.

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