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Technological Change, Demand and Employment

In: The Employment Consequences of Technological Change

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  • Douglas Jones

Abstract

In his seminal 1939 paper,2 Sir Roy Harrod stressed the need to ‘think dynamically’. In this spirit, this chapter attempts to apply the basic insights of the simple Harrod-Domar model to an assessment of the impact of technological change on employment. On the assumption that the demand for labour is a function of the demand for output, the advantage of the approach outlined is that it allows a clear theoretical distinction to be made between, on the one hand, the direct and indirect labour-displacing effects of new technology, and, on the other, the factors generating compensatory demand for labour. The latter can be divided into increases in demand induced by new technology and increases in demand determined independently of technological change.

Suggested Citation

  • Douglas Jones, 1983. "Technological Change, Demand and Employment," Palgrave Macmillan Books, in: Derek L. Bosworth (ed.), The Employment Consequences of Technological Change, chapter 2, pages 25-51, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-06089-4_3
    DOI: 10.1007/978-1-349-06089-4_3
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