Automation and polarisation

Jonas Loebbing, Daron Acemoğlu

Existing evidence shows that automation has impacted jobs in the middle of the pay and skill distribution, causing polarisation in the labour market. The column proposes a new explanation for this polarisation pattern: low wages at the bottom of the wage distribution have made automation of low-skill jobs less profitable. However, further improvements in the productivity of machines may extend the reach of automation, potentially reversing the polarisation pattern in the future.

Πηγή: Voxeu

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