Employment Effects of Technological Progress in U.S. Healthcare: Evidence from Listed Companies

Employment is the foundation of social stability and a key factor for economic stability and sustainable development. With the rapid advancement of technology, the impact of technological progress on employment has become a focal point of academic attention. As an emerging industry, the healthcare sector has experienced rapid growth in recent years, driven by the widespread application of scientific and technological innovations. However, at the same time, these advancements have also exerted a significant influence on employment within the healthcare sector. To address this issue, this paper utilizes panel data from publicly listed healthcare firms in the United States between 2013 and 2023. It innovatively measures technological progress through Total Factor Productivity (TFP) and employs a two-way fixed effects model to empirically analyze the impact of technological progress on employment in the healthcare sector from a microeconomic perspective. The findings indicate that a 1% increase in technological progress in the healthcare sector leads to an average 0.116% rise in employment levels. This conclusion remains robust after conducting rigorous robustness checks and addressing endogeneity concerns, with the output effect playing a significant role in this process. Heterogeneity analysis indicates that technological progress significantly promotes employment across various sub-sectors, though the magnitude of this effect varies only slightly among industries. Furthermore, the employment-promoting effect of technological progress is more pronounced in larger firms and those with a higher proportion of fixed assets. Therefore, policies should actively support the improvement of technology levels and management efficiency within the healthcare sector, fully leveraging the potential of technological progress to promote employment, and achieve sustainable development for both the healthcare sector and societal employment.