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Compensation or Substitution? Labour Market Effects of Technological and Structural Change

In: Modelling Aging and Migration Effects on Spatial Labor Markets

Author

Listed:
  • Uwe Blien

    (Institute for Employment Research (IAB)
    Otto-Friedrich-University of Bamberg)

  • Oliver Ludewig

    (Otto-Friedrich-University of Bamberg)

Abstract

Technological progress can have contradictory effects on employment development. On the one hand there is a substitution effect, because the same product can be produced with less labour. On the other hand there is a compensating effect, because prices will be decreased and therefore product demand and also labour demand will be increased. In the article the relative strength of the two effects is discussed and a brief empirical analysis for Germany is given.

Suggested Citation

  • Uwe Blien & Oliver Ludewig, 2018. "Compensation or Substitution? Labour Market Effects of Technological and Structural Change," Advances in Spatial Science, in: Roger R. Stough & Karima Kourtit & Peter Nijkamp & Uwe Blien (ed.), Modelling Aging and Migration Effects on Spatial Labor Markets, chapter 0, pages 333-343, Springer.
    • Handle: RePEc:spr:adspcp:978-3-319-68563-2_16
    DOI: 10.1007/978-3-319-68563-2_16
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