Topic > The effects of technological advances - 728

Higher economic growth rates are always associated with higher employment rates. This relationship between changes in the rate of economic growth and change in the unemployment rate is summarized by "Okun's law", a relationship that indicates that a 1% increase in the rate of economic growth reduces the unemployment rate by 0. 3%. (South-Western, 2006) Technological change increases the wage inequality gap in the short run, but closes it in the long run as the demand for intellectual and skilled jobs (such as engineering and programming) will result in increased education and training, which will lead to a reduction in inequality. Taking this into account, the economy has begun to respond to this changing market situation, as the percentage of high school and college graduates is steadily increasing, creating a greater supply and demand for skilled labor, as well as goods and higher value services. An example of this is the record numbers of men and women graduating from various universities and higher literacy rates, which improve living standards and provide vast opportunities for