Industrial Structure and the Employment Consequences of Technical Change

This paper investigates the impact of capital-augmenting technical change upon industry factor demands a nd so employment within the context of various models of industry str ucture, including both fixed and free entry. Potentially diverse resp onses are predicted. The elasticity of demand, the elasticity of subs titution, the state of market competition, and economies of scale are all shown to be important in determining the sign and size of the im pact of technical change on employment.