New Technology Boosts Labor and Capital, Transforming Economic Landscape
The article discusses how changes in technology can either increase the productivity of workers or the efficiency of machines. The researchers studied how these changes affect economic growth. They found that both types of technical change are important for boosting the economy, but labor-augmenting changes have a bigger impact on increasing wages and living standards. This means that investing in improving the skills and abilities of workers can lead to more significant economic benefits than just upgrading machines.