The Effects of Labor-Saving Technological Progress on Capital Accumulation: Evidence from NASDAQ-100 Firms
Abstract
This study delves into the impact of labor-saving technological progress on the capital accumulation of technology companies that have a substantial workforce consisting of highly skilled workers over the sample period from 2000/Q2 to 2021/Q3. To begin with, we estimate a three-equation system of the normalized-CES production function to derive labor-saving technical progress and the elasticity of substitution between capital and labor for NASDAQ-100 firms. Secondly, two linear regression models are estimated by using parameters acquired in the initial step to assess the impacts of labor-saving technological progress on capital accumulation. Based on the estimation results, labor-saving technological progress and the elasticity of substitution between capital and labor mitigate the upward trend of capital accumulation despite their stimulating impacts on economic value added in the NASDAQ-100 firms. These two adverse results are consistent with the concept of skill intensity in technology firms, referring to the difficulties of replacing automation with non-routine tasks and highly skilled workers. In this sense, along with the insufficient replacement of technological progress with labor, the detrimental effects of technological progress on capital accumulation widen the gap between labor productivity and labor compensation during profit expansion periods. These negative consequences are mitigated by worker layoffs during profit-downsizing periods, despite its accelerating impact on economic value added.
Keywords
Labor-Saving Technological Progress Capital Accumulation Technology Firms Labor Compensation CES Production Function
References
- ACEMOGLU, D., & DAVID, A. H. (2011). Skills, Tasks and Technologies: Implications for Employment and Earnings. Handbook of labor economics, 1043-1171.
- BATTISTI, M., BELLOC, F., & DEL GATTO, M. (2020). Labor productivity and firm-level TFP with technology-specific production functions. Review of Economic Dynamics, 283-300.
- CHADHA, N. K. (2008). Longevity and Labor Productivity: Experience from Ageing Asia. Tokyo: Asian Productivity Organization.
- CHANSARN, S. (2010). Labor Productivity Growth, Education, Health and Technological Progress: A Cross-Country Analysis. Economic Analysis and Policy, 249-261.
- CHARZARAKIS, N., & TSALKI, P. (2021). The dynamics of capital accumulation in Marx and Solow. Structural Change and Economic Dynamics, 148-158.
- DAVID, A. H., & DORN, D. (2013). The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market. American Economic Review, 1553-1597.
- DURYEA, S. (2002). Human capital policies: What they can and cannot do for productivity and poverty reduction in Latin America.
- FREY, C. B., & OSBORNE, M. A. (2017). The future of employment: How susceptible are jobs to computerisation? Technological Forecasting and Social Change, 254-280.
- GOLDIN, C., & KATZ, L. F. (2007). The Race between Education and Technology: The Evolution of U.S. Educational Wage Differentials, 1890 to 2005. NBER Working Paper 12984.
- HAZAN, M. (2006). Longevity and Lifetime Labour Input: Data and Implications. CEPR.
- KNAPP, D. (2007). The influence of health on labor productivity: An analysis of european conscription data. PhD Thesis.
- LEROUX, J., RIZZO, J., & SICKLES, R. (2004). Leroux, Justin, John Rizzo, and Robin Sickles. Health, Mental Health and Labor Productivity: The Role of Self-Reporting Bias. Rice University Working Paper 2004-09.
- MANYIKA, J., CHUI, M., MIREMADI, M., BUGHIN, J., GEORGE, K., WILLMOTT, P., & DEWHURST, M. (2017). A future that works: AI, automation, employment, and productivity. McKinsey Global Institute Research.
- MARX, K. (1977). Capital. New York.
- OECD. (2015). "The future of productivity". Paris: OECD Publising.
- RAZZAK, W. A. (2010). Education and labour productivity in New Zealand. Applied Economics Letters, 169-173.
- SHAIKH, A. (2016). Capitalism: Competition, Conflict, Crises. New York: Oxford University Press.
- SOLOW, R. M. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 65-94.
- SOLOW, R. M., TOBIN, J., von WEIZSACKER, C. C., & YAARI, M. (1966). Neoclassical Growth with Fixed Factor Proportions. The Review of Economic Studies, 79-115.
- TSALIKI, P. V. (2009). Economic development and unemployment: do they connect? International Journal of Social Economics .
- WORLDBANK. (2016). World development report 2016: Digital dividends. World Bank Group.
- YUNHUA, L., BENG, C. S., & WENZHI, L. (1998). Education, experience and productivity of labor in China's township and village enterprises: the case of Jiangsu province. Chine Economic Review, 47-58.
Emek Tasarruflu Teknolojik İlerlemenin Sermaye Birikimine Etkileri: NASDAQ-100 Firmaları Üzerine Bir Çalışma
Abstract
Bu çalışma, 2020 yılının ikinci çeyreğinden 2021 yılının üçüncü çeyreğine kadar olan örnekleme döneminde, nispeten fazla sayıda yüksek vasıflı işçi çalıştıran teknoloji firmalarında emek tasarrufu sağlayan teknolojik ilerlemenin sermaye birikimi üzerindeki etkilerini araştırmaktadır. İlk olarak, NASDAQ-100 firmaları için emek tasarruflu teknolojik ilerleme ve sermaye ve emek arasındaki ikame esnekliğini elde etmek için normalleştirilmiş CES üretim fonksiyonunun üç denklemli bir sistemi tahmin edilmiştir. İkinci olarak, emek tasarruflu teknolojik ilerlemenin teknoloji firmalarının sermaye birikimi üzerindeki etkilerini değerlendirmek adına ilk adımda elde edilen parametreler kullanılarak doğrusal bir regresyon modeli tahmin edilmiştir. Tahmin sonuçlarına göre, emek tasarruflu teknolojik ilerleme ve sermaye ile emek arasındaki ikame esnekliği, onların ekonomik katma değeri hızlandırıcı etkilerine ragmen, NASDAQ-100 firmalarının sermaye birikimlerindeki artış eğilimini yavaşlatmaktadır. Bu iki zıt sonuç, teknoloji firmalarında, otomasyonun rutin olmayan işlerin ve yüksek vasıflı çalışanların yerini almasındaki yetersizliğine işaret eden vasıf yoğunluğu konseptine uygundur. Bu bağlamda, emek tasarruflu teknolojik ilerleme, otomasyonun işgücünü yerinden etmedeki yetersizliğiyle birlikte, kar genişlemesi dönemlerinde, işgücü üretkenliği ve işgücü ödemeleri arasındaki uçurumu genişletmektedir. Teknolojik ilerlemenin ekonomik katma değere olan pozitif katkısına ragmen, bu negative sonuçlar kar daralması dönemlerinde, işten çıkarmalar ile yatıştırılmaktadır.
Keywords
Emek Tasarrufulu Teknolojik İlerleme Sermaye Birikimi Teknoloji Firmaları İşgücü Ödemeleri CES Üretim Fonksiyonu
References
- ACEMOGLU, D., & DAVID, A. H. (2011). Skills, Tasks and Technologies: Implications for Employment and Earnings. Handbook of labor economics, 1043-1171.
- BATTISTI, M., BELLOC, F., & DEL GATTO, M. (2020). Labor productivity and firm-level TFP with technology-specific production functions. Review of Economic Dynamics, 283-300.
- CHADHA, N. K. (2008). Longevity and Labor Productivity: Experience from Ageing Asia. Tokyo: Asian Productivity Organization.
- CHANSARN, S. (2010). Labor Productivity Growth, Education, Health and Technological Progress: A Cross-Country Analysis. Economic Analysis and Policy, 249-261.
- CHARZARAKIS, N., & TSALKI, P. (2021). The dynamics of capital accumulation in Marx and Solow. Structural Change and Economic Dynamics, 148-158.
- DAVID, A. H., & DORN, D. (2013). The Growth of Low-Skill Service Jobs and the Polarization of the US Labor Market. American Economic Review, 1553-1597.
- DURYEA, S. (2002). Human capital policies: What they can and cannot do for productivity and poverty reduction in Latin America.
- FREY, C. B., & OSBORNE, M. A. (2017). The future of employment: How susceptible are jobs to computerisation? Technological Forecasting and Social Change, 254-280.
- GOLDIN, C., & KATZ, L. F. (2007). The Race between Education and Technology: The Evolution of U.S. Educational Wage Differentials, 1890 to 2005. NBER Working Paper 12984.
- HAZAN, M. (2006). Longevity and Lifetime Labour Input: Data and Implications. CEPR.
- KNAPP, D. (2007). The influence of health on labor productivity: An analysis of european conscription data. PhD Thesis.
- LEROUX, J., RIZZO, J., & SICKLES, R. (2004). Leroux, Justin, John Rizzo, and Robin Sickles. Health, Mental Health and Labor Productivity: The Role of Self-Reporting Bias. Rice University Working Paper 2004-09.
- MANYIKA, J., CHUI, M., MIREMADI, M., BUGHIN, J., GEORGE, K., WILLMOTT, P., & DEWHURST, M. (2017). A future that works: AI, automation, employment, and productivity. McKinsey Global Institute Research.
- MARX, K. (1977). Capital. New York.
- OECD. (2015). "The future of productivity". Paris: OECD Publising.
- RAZZAK, W. A. (2010). Education and labour productivity in New Zealand. Applied Economics Letters, 169-173.
- SHAIKH, A. (2016). Capitalism: Competition, Conflict, Crises. New York: Oxford University Press.
- SOLOW, R. M. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 65-94.
- SOLOW, R. M., TOBIN, J., von WEIZSACKER, C. C., & YAARI, M. (1966). Neoclassical Growth with Fixed Factor Proportions. The Review of Economic Studies, 79-115.
- TSALIKI, P. V. (2009). Economic development and unemployment: do they connect? International Journal of Social Economics .
- WORLDBANK. (2016). World development report 2016: Digital dividends. World Bank Group.
- YUNHUA, L., BENG, C. S., & WENZHI, L. (1998). Education, experience and productivity of labor in China's township and village enterprises: the case of Jiangsu province. Chine Economic Review, 47-58.
Details
| Primary Language | English |
|---|---|
| Subjects | Capital Market, Technology Management and Business Models |
| Journal Section | Articles |
| Authors | |
| Early Pub Date | May 16, 2024 |
| Publication Date | May 17, 2024 |
| Acceptance Date | April 15, 2024 |
| Published in Issue | Year 2024 Volume: 11 Issue: 1 |
Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0)