Technological Change and Labor Demand

Technological Change and Labor Demand

Describe a technological change that increased labor demand in a particular market.

Describe an invention or technological advance that increased the marginal product of workers.
Explain how this invention increased the “marginal product” for workers in a particular industry.
How did this change in workers’ marginal product impact labor demand in that market?
Describe how the technological change effected wages and the level of employment in that market.
Your post should be 200-300 words long
Reply to the posts of at least two classmates (50-75 words)
Example: The nail gun increased the marginal product of labor for construction workers. Before pneumatic tools construction workers had to hammer nails by hand. With the introduction of the nail gun powered by an air compressor construction workers were able to drive many more nails per minute relative to using traditional hammers. This increase in marginal product for construction workers also increased the Value of their Marginal Product (VMP) from the perspective of the contractors who employ them. After the nail gun is introduced the same worker was far more productive. This allowed contractors who hire construction workers to complete more jobs per month. This increase in productivity translate to higher revenue for the contractor (the employer) and will shift the demand curve for construction workers to shift to the right. This shift in demand resulted in an increase in the equilibrium wage for construction workers and an increase in the number of construction workers employed.

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