Our objective is to study, in a labor market characterized by search frictions, the effect of technological progress on the average quality of job matches. For that, we use an extension of Mortensen and Pissarides (1998) and obtain as results that the effects of technological progress on the labor market depend upon the initial conditions of the economy. If the economy is totally characterized by the presence of low-quality job matches, an increase in technological progress is accompanied by an increase in the quality of jobs. In turn, if the economy is totally characterized by the presence of high-quality job matches, an increase in the technological progress rate implies the reverse effect. Finally, if the economy is totally characterized by the presence of very high-quality jobs, an increase in the technological progress rate implies an increase in the average quality of the job matches.
Job Creation; Job Destruction; Technological Progress
