Factors Affecting Technological Unemployment and Its Implications for the Macroeconomic Outlook of Iran

Document Type : Research Article

Authors

Alborz campus of tehran university

Abstract

Over the past decades, there has been widespread and significant technological change in countries around the world. Developing countries, including Iran, have been witnessing the spread of technology in various parts of the economy, with several delays, along with technological advances in the world. Despite the benefits of technology advancement to the economy, its effects on unemployment are not obvious. On the one hand, technological advancement leads to the creation of new businesses and, on the other hand, destroys some of the old professions. The invention of new machinery and equipment reduce the need for labor in some parts, because these tools and equipment performed more efficiently and quickly and efficiently. If technological advances are appropriate to the structure of the labor market and are based on the needs of the country's economic activities, it can reduce unemployment in the country. On the other hand, if the expansion of technology does not fit into the needs and economic structure of the country, it can have a negative effect on employment. Accordingly, in this study, the effects of technological progress on unemployment rate in Iran using time series data during 1395-1353 is evaluated. In order to estimate the research model, the ARDL econometric methods have been used. The empirical evidence from the estimation of research models show that technological progress in the Iranian economy led to an increase in unemployment, as the country's economic structures did not fit into technological advancements.

Keywords

References

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Journal of Applied Economics Studies in Iran
Volume 7, Issue 28
January 2019
Pages 111-139

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