Abstract

This paper aims to investigate the effects of technological progress, education,
and human capital on employment in the short and long run using an econometric ARDL
model for the period 1960-2019 across developed and developing countries. The hypothesis
was that technological progress destroys jobs at a faster rate than investments in education
and human capital can create. In the short run, the results confirmed the hypothesis that
technological progress destroys relatively more jobs. However, in the long run, the results
showed that the coefficients for education and human capital in developing countries out-weighed those for technological progress, thus rejecting the hypothesis for this group of
countries in the long run. For developed countries, coefficients for technological progress
and investments in human capital were positive and significant.

JEL Classification: E24; J24; O33.