Corpus ID: 34010299

Does Productivity Growth Threaten Employment?

  title={Does Productivity Growth Threaten Employment?},
  author={A. F. Salomons},
Is productivity growth inimical to employment? Canonical economic theory says no, but much recent economic theory says ‘maybe’ — that is, rapid advances in machine capabilities may curtail aggregate labor demand as technology increasingly encroaches on human job tasks. We explore the relationship between productivity growth and employment using countryand industry-level data for 19 countries over 35+ years. Consistent with both the popular narrative and the Baumol hypothesis, we find that… Expand
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