2021
DOI: 10.1093/jeea/jvab040
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Racing With or Against the Machine? Evidence on the Role of Trade in Europe

Abstract: Digital technologies displace labor from routine tasks, raising concerns that labor is racing against the machine. We develop an empirically tractable task-based framework to estimate the aggregate employment effects of routine-replacing technological change (RRTC), along with the labor and product demand channels through which this aggregate effect comes about, focusing on the role of inter-regional trade. While RRTC has indeed had strong displacement effects in Europe between 1999 and 2010, it has simultaneo… Show more

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Cited by 59 publications
(42 citation statements)
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“…Different theories exist in the literature regarding the effect of technological progress on employment, among them classical theory, Marxist theory, neoclassical theory, new growth theory, Schumpeter's innovation theory, and business cycle theory. Up to now, several studies have revealed a correlation between technological progress and employment [ 19 21 , 35 – 38 ]. Brouwer et al [ 35 ] conducted two innovative studies in the Netherlands to estimate the effects of technological progress on employment.…”
Section: Methodsmentioning
confidence: 99%
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“…Different theories exist in the literature regarding the effect of technological progress on employment, among them classical theory, Marxist theory, neoclassical theory, new growth theory, Schumpeter's innovation theory, and business cycle theory. Up to now, several studies have revealed a correlation between technological progress and employment [ 19 21 , 35 – 38 ]. Brouwer et al [ 35 ] conducted two innovative studies in the Netherlands to estimate the effects of technological progress on employment.…”
Section: Methodsmentioning
confidence: 99%
“…In comparison, the spillover effect from product demand brought about by technological progress led to an increase of nearly 21 million jobs. On the whole, technological progress has had a positive impact on employment levels for the European labor force [ 21 ].…”
Section: Methodsmentioning
confidence: 99%
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“…In addition, it is necessary to build on historical experience, when the introduction of new technologies has also created new jobs. An example is the period from 1999 to 2010, when computerization created more than 11 million jobs (Gregory et al, 2021).…”
Section: Aspects Of Examining Trends In Education In Labor Market Con...mentioning
confidence: 99%