New technology and unemployment: A simulation of macroeconomic impacts and responses in Canada

This paper addresses macroeconomic issues of the debate over high technology and unemployment. A macroeconometric simulation model with a number of special features is used to examine alternative scenarios of enhanced productivity performance in Canada over the next decade. Responses of wages, prices, and the monetary authorities are shown to be quantitatively important in determining the impact on employment. The type of productivity change and aggregate fiscal-policy response are shown to be less importance.