@TechReport{iza:izadps:dp2621, author={Vivarelli, Marco}, title={Innovation and Employment: A Survey}, year={2007}, month={Feb}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={2621}, url={https://www.iza.org/publications/dp2621}, abstract={According to the "compensation theory", market forces should assure a complete compensation of the initial labour-saving impact of process innovations. In this paper a critique of this approach is proposed through a detailed survey of the theoretical and empirical literature on the subject. The general conclusion is that – although compensation is always working – the complete counter-balancing of dismissed workers cannot be assumed ex-ante.}, keywords={technological unemployment;compensation;innovation}, }