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Chapter Three: How the Labor Market Adjusts to Technological Shocks

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Published: April 01, 2021

Whenever a new technology is introduced, the economy goes through structural changes. Workers then adjust to new conditions and grow within the new sectors. However, adjustments take time as workers accumulate more skills or change locations.

This lecture was recorded in the fall of 2019 before the pandemic.

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Discussion Questions

  1. Why is the labor market important to understand?
  2. How do people adjust to technological changes that affect their jobs?

Additional Resource

  • Erik Hurst talks with EconTalk host Russ Roberts about the state of the labor market in the United States. Available here.