This Paper studies the inter-temporal problem of a monopolistic firm that engages in productivity-enhancing innovations to reduce its labour costs. If the level of wages is sufficiently low, the firm's rate of productivity growth approaches the rate of wage growth and eventually the firm reaches...

This paper investigates the impact of innovation on employment using a panel of UK manufacturing firms and a headcount measure of innovations. It focuses on unionized firms and outlines a methodology for testing between various types of union bargaining models. It also argues that the innovation...

This paper examines the impact of technological innovation on wages using a panel of UK manufacturing firms. We utilize a headcount measure of major innovations between 1945-83 combined with share price and accounting information. Innovating firms are found to have higher average wages, but...