Bernd Ebersberger, Andreas Pyka
Innovation and Sectoral Employment: A Trade-Off between Compensation Mechanisms
Abstract:
The question whether technological progress displaces employment or whether
technological advance is beneficial for the level of employment has been
in the core of economic dispute for over two centuries. The beneficial
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 employment despite of
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 the short run and the
long run properties of the model. There we focus on the influence of wage
restraint policy on the functioning of the compensation mechanism.
JEL: J3, L2, O3
Paper:
Paper available as pdf-file.
Beitrag Nr. 191, Volkswirtschaftliche Diskussionsreihe, Institut für
Volkswirtschaftslehre der Universität Augsburg
Contact:
Bernd
Ebersberger, University of Augsburg, Department of Economics,
Universitätsstr. 16, D-86159 Augsburg, Phone +49-821-598-4179, Fax
+49-821-598-4229
Andreas
Pyka, University of Augsburg, Department of Economics,
Universitätsstr. 16, D-86159 Augsburg, Phone +49-821-598-4179, Fax
+49-821-598-4229
v.
K., 15.12.1999