chapter  3
Modelling the employment impact of innovation
Do compensation mechanisms work?
ByRoberto Simonetti, Karl Taylor, Marco Vivarelli
Pages 18

Since the time of the industrial revolution, the introduction of new technology has had a direct impact on the nature and the level of employment. Workers have often opposed the introduction of new machines that substituted labour in the production process, and some economists have coined the term ‘technological unemployment’ to indicate unemployment caused by new technology.