Technology shocks and job flows
- Autores: Claudio Michelacci, J. David López Salido
- Localización: Documentos de trabajo - Banco de España, ISSN 0213-2710, Nº 8, 2003, págs. 7-48
- Idioma: inglés
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Resumen
We decompose the low-frequency movements in labour productivity into an investment-neutral and investment-specific technology component. We show that neutral technology shocks cause a short run increase in job creation and job destruction and leads to a reduction in aggregate employment. Investmentspecific technology shocks reduce job destruction, have mild e ects on job creation and are expansionary. We construct a general equilibrium search model with neutral and investment-specific technological progress. We show that the model can replicate these findings if neutral technological progress is mainly embodied into new jobs, while investment-specific technological progress bene- fits (almost) equally old and new jobs. This provides evidence in favor of models where old jobs can (at least partially) reap the benefits of ongoing technological progress.
