How does a disruptive technology affect the composition of the labor force? My answer is that it depends on whether the technology is a gross complement or a gross substitute.
If the technology is gross complement, then the demand for skilled labor will increase as the price of the technology decreases.
If the technology is a gross substitute, then as the price of the technology decreases, the demand for labor decreases.
In education, teachers usually think technology assists in teaching. However, teachers love what technology can do for them, but they are slow to adapt. I think most teachers willingly accept new computers in their classrooms, but seldom adopt the software that can substitute for a teacher. I am wondering if the emphasis on teacher in-service should be on changing attitudes toward software in the classroom.
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