2021/17 LEM Working Paper Series

Technological paradigms, labour creation and destruction in a multi-sector agent-based model

Giovanni Dosi, Marcelo C. Pereira, Andrea Roventini and Maria Enrica Virgillito
Technical change; technological unemployment; structural change; consumption patterns.

  JEL Classifications
J51, E02, E24, C63
This paper presents an agent-based model (ABM) of endogenous arrival of technological paradigms and new sectors entailing different patterns of labour creation and destruction, as well as of consumption dynamics. The model, building on the labour-augmented K+S ABM, addresses the long-term patterns of labour demand emerging from heterogeneous forms of technical change. It provides a multi-level, integrated perspective on so called scenarios of the future of work, currently often restricted or to firm-level or to short-time sectoral analyses, and studies the conditions under which labour creation and destruction tend to balance. It is a relatively fair and stable distribution of income granted by a Fordist-type of regulation of the labour market that guarantees that the model never reaches stages of full technological unemployment. Patterns of coordination between technical change and aggregate demand are also ensured by the increasing product complexity which keeps on absorbing the labour force.
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