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 GDP, ii) de-clining real wages of low-skilled workers, and iii) an increasing...

We analyze the effects of declining population growth on automation. A simple theoretical model of capital accumulation predicts that countries with lower population growth introduce automation technologies earlier. We test the theoretical prediction on panel data for 60 countries over the time...

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...

We analyze the effects of R&D-driven automation on economic growth, education, and inequality when high-skilled workers are complements to machines and low-skilled workers are substitutes for machines. The model predicts that innovation-driven growth leads to an increasing population share of...

Will low-skilled workers be replaced by automation? To answer this question, we set up a search and matching model that features two skill types of workers and includes automation capital as an additional production factor. Automation capital is a perfect substitute for low-skilled workers and...

Globalization and automation have brought about a tremendous increase in productivity, with enormous benefits, but also a dramatic reallocation of jobs, skills, and incomes, which might jeopardize the full realization of those benefits. Current social policies may not be adequate to successfully...

We introduce automation into the standard Solovian model of capital accumulation and show that (i) there is the possibility of perpetual growth, even in the absence of technological progress; (ii) the long-run economic growth rate declines with population growth, which is consistent with the...

We introduce automation into a standard model of capital accumulation and show that (i) there is the possibility of perpetual growth, even in the absence of technological progress; (ii) the long-run economic growth rate declines with population growth, which is consistent with the available...

This paper assesses the importance of digitalization in Germany and other developed countries with a particular attention to the potential or actual impact it may have on the labor market. Referring to available empirical evidence, we document the already developing transformation of occupations...

We study the effect of minimum wage increases on employment in automatable jobs – jobs in which employers may find it easier to substitute machines for people – focusing on low-skilled workers for whom such substitution may be spurred by minimum wage increases. Based on CPS data from...

This study explores the perspectives of business college graduates, how technology has shaped the structures of their jobs, and the role of non-technical skills as they navigate the changing career path. Three overlapping themes emerged from the data analysis: (1) influence of increased...

Technological justice can play an important role within the international system in resolving global challenges and creating a smart and more egalitarian society. Technological and scientific developments are generating huge opportunities for tackling societal challenges. However, the benefits...

This study explores the perspectives of business college graduates, how technology has shaped the structures of their jobs, and the role of non-technical skills as they navigate the changing career path. Three overlapping themes emerged from the data analysis: (1) influence of increased...

U.S. manufacturing experienced a precipitous and historically unprecedented decline in employment in the 2000s. Many economists and other analysts - pointing to decades of statistics showing that manufacturing real (inflation-adjusted) output growth has largely kept pace with private sector real...

We propose a theoretical framework to analyze the offshoring and reshoring decisions of firms in the age of automation. Our theory suggests that increasing productivity in automation leads to a relocation of previously offshored production back to the home economy but without improving...

We study the effect of minimum wage increases on employment in automatable jobs - jobs in which employers may find it easier to substitute machines for people - focusing on low-skilled workers for whom such substitution may be spurred by minimum wage increases. Based on CPS data from 1980-2015,...

Technological justice can play an important role within the international system in resolving global challenges and creating a smart and more egalitarian society. Technological and scientific developments are generating huge opportunities for tackling societal challenges. However, the benefits...

Digitalization technologies, such as automation, robotization, artificial intelligence and Big Data are increasingly shaping economic processes. In public discourse, extreme outlooks are widespread. Either digital technologies will provide the solution to most contemporary problems, or dystopian...

Digitalization technologies, such as automation, robotization, artificial intelligence and Big Data are increasingly shaping economic processes. In public discourse, extreme outlooks are widespread. Either digital technologies will provide the solution to most contemporary problems, or dystopian...

Will low-skilled workers be replaced by automation? To answer this question, we set up a search and matching model that features two skill types of workers and includes automation capital as an additional production factor. Automation capital is a perfect substitute for low-skilled workers and...

This paper presents general results on the effect of endogenous technical change on relative wages in a simple general equilibrium model that covers several more elaborate models of technology choice. The results are based on a simple and intuitive notion of complementarity between technology...

We propose a theoretical framework to analyze the offshoring and reshoring decisions of firms in the age of automation. Our theory suggests that increasing productivity in automation leads to a relocation of previously offshored production back to the home economy but without improving...

Will low-skilled workers be replaced by automation? To answer this question, we set up a search and matching model that features two skill types of workers and includes automation capital as an additional production factor. Automation capital is a perfect substitute for low-skilled workers and...

Globally, an estimated 734 million jobs will be required between 2010 and 2030 to accommodate recent and ongoing demographic shifts, account for plausible changes in labour force participation rates, and achieve target unemployment rates of at or below 4 percent for adults and at or below 8...

This paper focuses on identifying determinants of 'automatability risk', namely the propensity of EU employees being in jobs with high risk of substitutability by machines, robots or other algorithmic processes, and uncovers its impact on labour market outcomes. Using relevant data on tasks and...

This paper focuses on identifying determinants of "automatability risk", namely the propensity of EU employees being in jobs with high risk of substitutability by machines, robots or other algorithmic processes, and uncovers its impact on labour market outcomes. Using relevant data on tasks and...

Characterizing the work that people do on their jobs is a longstanding and core issue in labor economics. Traditionally, classification has been done manually. If it were possible to combine new computational tools and administrative wage records to generate an automated crosswalk between job...

This article reviews the major issues and discussions related to the impact of the digital revolution on labour. First, it emphasizes that the current digital revolution in manufacturing and services is not a revolution in the sense of a sudden technological breakthrough. It rather argues that...

How do firms respond to technological advances that facilitate the automation of tasks? Which tasks will they automate, and what types of worker will be replaced as a result? We present a model that distinguishes between a task's engineering complexity and its training requirements. When two...

Automation and globalization have brought about a tremendous increase in productivity, but also accelerated job destruction, systemic risks, and greater income inequality. Current social policies may not be adequate for achieving the goals of redistributing the gains from automation and...

The world is changing rapidly. This paper describes key shifts and it discusses their likely impacts on employment-related aspects. Labor market pressures are felt around the globe, and robots and automation increasingly become reality. However, there will be no "end of work". Rather, it is that...

Digitalization is the buzzword under which profound changes of the labor market can be summarized. Next to automation, i.e., the increasing use of robots, "intelligent" machines and more comprehensive algorithms that is no longer restricted to routine tasks, especially the emerging platform...

We analyze the effects of declining population growth on the adoption of automation technology. A standard theoretical framework of the accumulation of traditional physical capital and of automation capital predicts that countries with a lower population growth rate are the ones that innovate...

We analyze the long-run growth effects of automation in the standard overlap- ping generations framework. We show that, in contrast to other neoclassical models of capital accumulation, automation does not promote growth but induces economic stagnation. The reason is that automation suppresses...

We analyze the effect of automation on economic growth and inequality in an R&D-based growth model with two types of labor: highskilled labor that is complementary to machines and low-skilled labor that is a substitute for machines. The model predicts that innovationdriven growth leads to...

The aim of this research is to provide novel evidence regarding the functioning of the Nordic model of economic development and the robustness of its institutions. At first, the paper defines a conceptual analytical framework identifying the key features of the model for the Nordic economies...

We analyze the long-run growth effects of automation in the canonical overlapping generations framework. While automation implies constant returns to capital within this model class (even in the absence of technological progress), we show that it does not have the potential to lead to positive...

We are witnessing the start of a deep and prolonged political convulsion. This convulsion is caused by the impact of technological change on how wealth is generated and distributed in our societies. Since the 1970s advanced economies have seen a strong productivity increase and stagnant labor...

The aim of this research is to provide novel evidence regarding the functioning of the Nordic model of economic development and the robustness of its institutions. At first, the paper defines a conceptual analytical framework identifying the key features of the model for the Nordic economies...