Labor Economics

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Chapter 10

Technological Progress

In this chapter we will:

  • Show how technological progress influences job creation and job destruction
  • See that technological progress can drive unemployment either up or down
  • Study the significant impact that technological progress has had on wageinequality and the occupational structure over the last century
  • Estimate the impact of technological progress on wage inequality using the approach of Katz and Murphy (1992) (Data and programs available at allow us to apply this approach to the United Statesover the period 1963–2008.)
  • Analyze the phenomenon of wage and job polarization
  • Look at the contrasting profiles of wage inequality and unemployment in NorthAmerica and Europe
  • Observe that investment in education can influence the direction of technological progress

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Graphics of the chapter

Reproducing the figures and the main results

Chapter 10 figures


Autorn, D., & Dorn, D. (2013) "The growth of low-skill service jobs and the polarization of the U.S. labor market" American Economic Review


Teaching slides

  • Presentation Title
  • author
  • Creation date
    • Technological progress, unemployment and inequality
    • Pierre Cahuc, Stéphane Carcillo, André Zylberberg
    • 12/08/2014