No 663 December 2004 Productivity Growth and Employment : Theory and Panel Estimates

Abstract

Theoretical predictions of the effect of TFP growth on employment are ambiguous, and depend on the extent to which new technology is embodied in new jobs. We estimate a model for employment, wages and investment with an annual panel for the United States, Japan and Europe and find that TFP growth increases employment. For the United States TFP growth… (More)

11 Figures and Tables