In a multi-sector model estimated on U.S. data, we apply standard long-run restrictions to investigate the labour market consequences of investment-specific and neutral technology shocks. We set up a global VAR model where aggregate technology shocks feed onto sector-specific dynamics and then propagate back through the network structure of the economy. At the aggregate level, our results are consistent with the wealth of existing empirical studies where investment-specific technology shocks trigger favourable employment responses, in contrast to neutral technology shocks. At a disaggregate level, however, we uncover the significant contribution of sectoral spill-overs in response to technology shocks, particularly in driving the adjustment towards long-term equilibrium.

Dragomirescu-Gaina, C., Elia, L., Technology shocks and sectoral labour market spill-overs, <<ECONOMICS LETTERS>>, 2021; 201 (April): N/A-N/A. [doi:10.1016/j.econlet.2021.109784] [https://hdl.handle.net/10807/188708]

Technology shocks and sectoral labour market spill-overs

Dragomirescu-Gaina, Catalin-Florinel;
2021

Abstract

In a multi-sector model estimated on U.S. data, we apply standard long-run restrictions to investigate the labour market consequences of investment-specific and neutral technology shocks. We set up a global VAR model where aggregate technology shocks feed onto sector-specific dynamics and then propagate back through the network structure of the economy. At the aggregate level, our results are consistent with the wealth of existing empirical studies where investment-specific technology shocks trigger favourable employment responses, in contrast to neutral technology shocks. At a disaggregate level, however, we uncover the significant contribution of sectoral spill-overs in response to technology shocks, particularly in driving the adjustment towards long-term equilibrium.
2021
Inglese
Dragomirescu-Gaina, C., Elia, L., Technology shocks and sectoral labour market spill-overs, <<ECONOMICS LETTERS>>, 2021; 201 (April): N/A-N/A. [doi:10.1016/j.econlet.2021.109784] [https://hdl.handle.net/10807/188708]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/188708
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