European Business Schools Librarian's Group

Working Papers,
Copenhagen Business School, Department of Economics

No 11-2026: Technological Progress and Fair Compensation

Karol Szwagrzak (), Juan D. Moreno-Ternero () and Lars Peter Østerdal ()
Additional contact information
Karol Szwagrzak: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark
Juan D. Moreno-Ternero: Department of Economics, Universidad Pablo de Olavide
Lars Peter Østerdal: Department of Economics, Copenhagen Business School, Postal: Copenhagen Business School, Department of Economics, Porcelaenshaven 16 A. 1. floor, DK-2000 Frederiksberg, Denmark

Abstract: Can everyone benefit from technological progress? We study this question in a stylized model where individuals contribute inputs to produce a good and then divide the market value of the output, compensating each individual for her contribution. In this context, technological progress enables a greater output for each input combination. We show that requiring that technological progress does not harm any individual, reducing her compensation, clashes with other basic distributive goals.

Keywords: Technological progress; Fair compensation; Technological monotonicity; Equity

JEL-codes: D63; D70; D71; O33

Language: English

14 pages, August 3, 2026

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