Does Technology Cause Unemployment?

12 Pages Posted: 12 Oct 2009

Date Written: October 7, 2009


It will be shown in this paper that unemployment rate due to technology use in production has an optimum (maximum) at a critical point of technology use. For any technology use lower than this critical level the unemployment rate increases as technology use increases, while the opposite takes place if technology use increases beyond this critical level. This paper refers to the whole manufacturing sector in many western European countries covering annually the period 1995 - 2005. Panel data are elaborated with the Eviews software package.

Keywords: Technology, unemployment, labour market frictions, education, optimization, panel data analysis

JEL Classification: O14, E24, J24, J51, J52, A2, C61, C23

Suggested Citation

Georgiou, Miltiades N., Does Technology Cause Unemployment? (October 7, 2009). Available at SSRN: or

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