This paper aims to analyze the relationship between technological change and unemployment across the United States. Building on previous research, I run a two-stage least- squares regression that links technological change to unemployment. Technological change is proxied with commercially-supplied research and development expenditures. I acquire data from the Bureau of Labor Statistics on unemployment rates and data from the National Science Foundation on research and development expenditures from 2002-2013 for each state. Control variables include GDP, the minimum wage, education expenditures, violent crime and property crime rates, union coverage, unemployment benefits, and poverty rates. I find evidence that technological change displaces labor in the United States, but the magnitude of the effect is small.
Major Themes in Economics
©2018 by Major Themes in Economics
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
"Technological Unemployment in the United States: A State-Level Analysis,"
Major Themes in Economics, 20, 87-101.
Available at: https://scholarworks.uni.edu/mtie/vol20/iss1/6