Adjustment of Employment to Technical Change in the Steel and Auto Industries

摘要

This paper presents estimates of what effect technical change had on labor demand from 1958 to 1977 in two important U.S. industries --steel and autos. Both of these industries have, over the period studied, experienced technological innovation; new methods of production have been developed and introduced. At the same time, their employment experience has been mixed. Employment grew over the time period in the auto industry, but fell in the steel industry. This kind of mixed pattern makes it difficult to relate technical change and employment. Technical change might have decreased employment by displacing workers with new machines and equipment, or it might have increased employment by helping to keep these industries competitive in world markets.