Rise of the machines: the effects of labor-saving innovations on jobs and wages

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Permanent URL for this page: http://hdl.voced.edu.au/10707/351268.

Author: Feng, Andy; Graetz, Georg


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? [The authors] present a model that distinguishes between a task's engineering complexity and its training requirements. When two tasks are equally complex, firms will automate the task that requires more training and in which labor is hence more expensive. Under quite general conditions this leads to job polarization, a decline in middle wage jobs relative to both high and low wage jobs. [The authors'] theory...  [+] Show more

Subjects: Technology; Employment; Teaching and learning; Income; Innovation

Keywords: Technological change; Skilled worker; Training; Wage; History

Geographic subjects: United States; North America

Published: Bonn, Germany: IZA, 2015

Physical description: 52 p.

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Series: IZA discussion paper; no. 8836

Resource type: Discussion paper

Call number: TD/TNC 119.226

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