Impact of Technological Change on Employment and Wages in the EU

Vugar Ahmadov

Bachelor's thesis

Abstract:

This thesis examines the impact of technological advancements on employment and wages in European Union. In order to examine this relation the date set for period over 1990-2010 of 10 European Member states were used. The data represented statistical information for Austria, Germany, France , Finland, Spain, Denmark, Netherlands, Ireland , Italy and the United Kingdom. With the help of regression it was concluded there is significant relation of employment and wages with technological advancements. I use the R&D expenditures share of GDP as main proxy for technological advancements, unemployment rate and average wage for dependent variable. Using the Fixed Effects estimator, I found that there is negative relation between R&D expenditures and Unemployment rate. Similarly, I found that there is negative relation between R&D expenditures and Average Wages. Thus , I discuss possible explanation for this paradox.

Abstract:

This thesis examines the impact of technological advancements on employment and wages in European Union. In order to examine this relation the date set for period over 1990-2010 of 10 European Member states were used. The data represented statistical information for Austria, Germany, France , Finland, Spain, Denmark, Netherlands, Ireland , Italy and the United Kingdom. With the help of regression it was concluded there is significant relation of employment and wages with technological advancements. I use the R&D expenditures share of GDP as main proxy for technological advancements, unemployment rate and average wage for dependent variable. Using the Fixed Effects estimator, I found that there is negative relation between R&D expenditures and Unemployment rate. Similarly, I found that there is negative relation between R&D expenditures and Average Wages. Thus , I discuss possible explanation for this paradox.

Keywords

Technological Advancements, Compensation mechanism, Job and Wage polarization

Keywords

Job and Wage polarization, Compensation mechanism, Technological Advancements

Language used: English

Date on which the thesis was submitted / produced: 11. 3. 2015

Thesis defence

• Date of defence: 10. 9. 2015
• Supervisor: Petr Špecián
• Reader: Jaromír Prokop

Vysoká škola ekonomická v Praze

Bachelor programme / field:
Ekonomie a hospodářská správa / Economics