The composite link between technological change and employment: A survey of the literature

Abstract

The role played by technological change in employment trends has long been debated and investigated, but the evidence has proven to be inconclusive. This paper aims to shed light on this topic by critically reviewing a broad and heterogeneous body of literature on the employment implications of technical progress. To this purpose, it briefly discusses the main theories and models that underpin the empirical analysis and reviews the literature following two main criteria, namely, the proxy for technological change and the level of analysis. It also accounts for the effect of technical progress on both overall employment and on distinct occupational, educational and demographic groups. Particular attention is devoted to the results of some very recent studies that attempt to unfold the impact of complex automation technologies, especially robots, and to provide a preliminary account of the evolution, distribution, challenges and potential of Artificial Intelligence.