We present a framework for understanding the effects of automation and other types of technological changes on labor … allocation of tasks to capital and labor - the task content of production. Automation, which enables capital to replace labor in … a result, automation always reduces the labor share in value added and may reduce labor demand even as it raises …

counteracted by a productivity effect, resulting from the cost savings generated by automation, which increase the demand for labor …We summarize a framework for the study of the implications of automation and AI on the demand for labor, wages, and … employment. Our task-based framework emphasizes the displacement effect that automation creates as machines and AI replace labor …