Technology and jobs: A systematic literature review

• Main Authors: Hötte, Kerstin, Somers, Melline, Theodorakopoulos, Angelos
• Format: Journal Article
• Language: English
• Published: 04-04-2022
• Subjects: Quantitative Finance - Economics
• DOI: 10.48550/arxiv.2204.01296

Does technological change destroy or create jobs? New technologies may
replace human workers, but can simultaneously create jobs if workers are needed
to use these technologies or if new economic activities emerge. Furthermore,
technology-driven productivity growth may increase disposable income,
stimulating a demand-induced expansion of employment. To synthesize the
existing knowledge on this question, we systematically review the empirical
literature on the past four decades of technological change and its impact on
employment, distinguishing between five broad technology categories (ICT,
Robots, Innovation, TFP-style, Other). Overall, we find across studies that the
labor-displacing effect of technology appears to be more than offset by
compensating mechanisms that create or reinstate labor. This holds for most
types of technology, suggesting that previous anxieties over widespread
technology-driven unemployment lack an empirical base, at least so far.
Nevertheless, low-skill, production, and manufacturing workers have been
adversely affected by technological change, and effective up- and reskilling
strategies should remain at the forefront of policy making along with targeted
social support systems.