The New Techno-Economic Paradigm: Labor-User or Labor-Saver?

Abstract

The new techno-economic paradigm that has already taken place in some key industries is not that expected to harm labor market but requires more skills. The purpose of this study is to investigate the effects of the new technological advancements in the last two decades on employment and skill formation through an econometric study in the case of Turkish manufacturing. The results may be summarized as follows: First, the new paradigm has been found labor-using in the Turkish case. Second, the effects of the new paradigm on different skills are not clearly distinguishable. Finally, most of the factors, paticularly capital and labor, are found to be complimentary.