When Does Labor Scarcity Encourage Innovation?
研究劳动力稀缺是否促进技术进步(技术采用或创新),区分了强劳动节约型和强劳动互补型技术,发现劳动力稀缺仅在技术为强劳动节约型时鼓励技术进步。
This paper studies whether labor scarcity encourages technological advances, that is, technology adoption or innovation, for example, as claimed by Habakkuk in the context of nineteenth-century United States. I define technology as strongly labor saving if technological advances reduce the marginal product of labor and as strongly labor complementary if they increase it. I show that labor scarcity encourages technological advances if technology is strongly labor saving and will discourage them if technology is strongly labor complementary. I also show that technology can be strongly labor saving in plausible environments but not in many canonical macroeconomic models.