Do technical change and mechanisation negatively affect employment in the manufacturing sectors? An empirical assessment for the OECD countries

  1. Boundi-Chraki, Fahd 1
  1. 1 Department of Applied Economics, Structure and History, Complutense University of Madrid, Madrid, Spain
Revista:
Economic Research-Ekonomska Istraživanja

ISSN: 1331-677X,  1848-9664

Año de publicación: 2023

Volumen: 36

Número: 2

Tipo: Artículo

DOI: 10.1080/1331677X.2023.2172598 GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Economic Research-Ekonomska Istraživanja

Resumen

The present study is aimed at assessing the impacts of technologicalchange and mechanisation on employment in the manufacturingsectors of the OECD countries over the 1995-2018 period. To achievethis goal, the vertically integrated labour productivity and the verti-cally integrated capital-labour ratio were computed as measures oftechnological progress and capital intensity per unit of labour,whereas the CS-ARDL and CS-DL approaches were applied to obtainrobust results in the presence of cross-sectional dependence andslope heterogeneity. The findings suggest that both technicalchange and mechanisation may lead to a relative decrease inemployment in the short-run and long-run, though for skilled work-ers the effects appear to be positive. This increase in demand forskilled labour, however, may not be able to compensate for thedecline in medium and lesser skilled labourers.

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