The Aggregate Technology And Contractionary Effects: An Empirical Estimation

Abstract

Two identifying techniques were used to examine the effects on employment (or hours worked) following a technological innovation at the aggregate level in the United Kingdom’s (U.K) economy for the period 1970-2007. In addition, special attention was given to the treatment and/or the definition of hours worked, particularly the debate on level and first differenced hours. Thus, in primarily utilizing the Bank of England dataset, no significant evidence of contractionary effects in the U.K private business economy was found, which contrasts with some recent studies based on the USA post-war II private business economy.