Innovation and Sectoral Employment

A Trade-Off between Compensation Mechanisms

Bernd Ebersberger, A, Pyka

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)

Abstract

The question whether technological progress displaces employment or whether technological advance is beneficial for the level of employment has been at the core of economic debate for over two centuries. The beneficial effect might be achieved by several compensation mechanisms within the economic system. In this paper we categorize these compensation mechanisms into two basic categories that reflect the different nature of the ideas ruling the compensation. We discriminate the mechanisms of employment despite innovation from employment via innovation. In the context of new innovation economics we model an artificial industry implementing both compensation mechanisms. Simulation analysis is used to examine both the short–run and long–run properties of the model. There we focus on the influence of wage restraint policy on the functioning of the compensation mechanism.
Original languageEnglish
Pages (from-to)635-665
Number of pages11
JournalLabour
Volume16
Issue number4
DOIs
Publication statusPublished - 2003
MoE publication typeA1 Journal article-refereed

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trade-off
innovation
technological progress
economic model
economic system
wage
economics
simulation
industry

Keywords

  • innovation

Cite this

Ebersberger, Bernd ; Pyka, A,. / Innovation and Sectoral Employment : A Trade-Off between Compensation Mechanisms. In: Labour. 2003 ; Vol. 16, No. 4. pp. 635-665.
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Innovation and Sectoral Employment : A Trade-Off between Compensation Mechanisms. / Ebersberger, Bernd; Pyka, A,.

In: Labour, Vol. 16, No. 4, 2003, p. 635-665.

Research output: Contribution to journalArticleScientificpeer-review

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