Compensation or Substitution? Labour Market Effects of Technological and Structural Change

  • Uwe BlienEmail author
  • Oliver Ludewig
Part of the Advances in Spatial Science book series (ADVSPATIAL)


Technological progress can have contradictory effects on employment development. On the one hand there is a substitution effect, because the same product can be produced with less labour. On the other hand there is a compensating effect, because prices will be decreased and therefore product demand and also labour demand will be increased. In the article the relative strength of the two effects is discussed and a brief empirical analysis for Germany is given.


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© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Institute for Employment Research (IAB)NurembergGermany
  2. 2.Otto-Friedrich-University of BambergBambergGermany

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