Özet:

Purpose: The aim of this study is to examine the short and long-term effects of technological development variables (R&D expenditures, high technology exports and patent applications) and public education expenditures on unemployment using the ARDL-PMG approach. Methodology: Panel Ardl model, which is known as an error correction model and allows the diagnosis of short-and long-term relationships, is used. Do technological advances cause the unemployment rate to rise? And Is there a link between technological advances, expenditure on education and employment? In this study, which tries to answer these two questions, ARDL and DH panel causality tests were applied for the European Union. Findings: According to the Panel ARLD-PMG analysis findings, while R&D spending increases unemployment in the short term, a 1% increase in R&D spending decreases unemployment by 1.42% over the long term. Similarly, a 1% increase in education expenditure decreases unemployment by 0.165% over the long term. Also, R&D spending and high technology exports have bidirectional causation, and bi-directional causality has been identified between unemployment and education expenditures. Practical Implications: While the widespread use of Industry 4.0 provides significant job savings, it creates pressure on employment. Policymakers should set more careful policies to support employment. The possibility of technological unemployment spreading can cause individual and social instabilities and problems. Originality: The contribution of the study to the literature allows us to see the effectiveness of public education expenditures while determining the effect of technological developments on unemployment.

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