Robots and the skill premium: An automation-based explanation of wage inequality

We analyze the effects of automation on the wages of high-skilled and low-skilled workers and thereby on the evolution of wage inequality. Our model explains the simultaneous presence of i) increasing per capita income, ii) declining real wages of low-skilled workers, and iii) an increasing skill-premium. These developments are consistent with the experience in the United States over the past decades.

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Year of publication:	2017
Authors:	Lankisch, Clemens ; Prettner, Klaus ; Prskawetz, Alexia
Publisher:	Vienna : Vienna University of Technology, Institute of Statistics and Mathematical Methods in Economics, Research Group Economics
Subject:	automation \| declining wages of low-skilled workers \| wage inequality \| skill premium \| long-run growth

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Series:	ECON WPS ; 06/2017
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	896045625 [GVK] hdl:10419/168027 [Handle] RePEc:zbw:tuweco:062017 [RePEc]
Classification:	O11 - Macroeconomic Analyses of Economic Development ; O41 - One, Two, and Multisector Growth Models ; i24
Source:	EconStor

Persistent link: https://www.econbiz.de/10011710226