The Labour Market Effects of Technology Shocks

Fabio Canova, Claudio Michelacci () and López-Salido, J David
Authors registered in the RePEc Author Service: J. David Lopez-Salido

No 6365, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We analyze the effects of neutral and investment-specific technology shocks on hours worked and unemployment. We characterize the response of unemployment in terms of job separation and job finding rates. We find that job separation rates mainly account for the impact response of unemployment while job finding rates for movements along its adjustment path. Neutral shocks increase unemployment and explain a substantial portion of unemployment and output volatility; investment-specific shocks expand employment and hours worked and mostly contribute to hours worked volatility. We show that this evidence is consistent with the view that neutral technological progress prompts Schumpeterian creative destruction, while investment specific technological progress has standard neoclassical features.

Keywords: Creative destruction; Search frictions; Technological progress (search for similar items in EconPapers)
JEL-codes: E00 J60 O33 (search for similar items in EconPapers)
Date: 2007-06
New Economics Papers: this item is included in nep-bec, nep-dge, nep-mac and nep-tid
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://cepr.org/publications/DP6365 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: The labor market effects of technology shocks (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:6365

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP6365

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().