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 …

This paper points out that modeling automation as factor-augmenting technological change has several unappealing … reduce the equilibrium wage (for realistic parameter values). This approach to automation also enables a discussion of … capital, the deepening of automation (whereby machines be-come more productive in tasks that are already automated), and the …