In the debate concerning the economic consequences of technological change much has been written about the possibility of job loss. Relatively few studies have used an explicit framework of micro- and macro-economic analysis to examine this topic, however. Assertions about the employment outcome of the process of technical change tend to involve pessimistic generalisations from particular cases or a resort to optimistic predictions based on elegant but unrealistic neoclassical analysis. The present paper is designed to use simple tools of micro- and macro-economic theory to illustrate a variety of factors which may impinge upon this complex question and to show the circumstances in which technologically-induced unemployment may arise.
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