On the Welfare Implications of Automation | E-Axes

Not a member yet? Click here.
Forgot your Password?
Archives - Categories
On Inequality
On the Eurozone Debt Crisis
On Monetary Policy and Central Banking
On Global Economic Growth
On the Greek Debt Crisis
On the Banking and Financial Sectors
On Brexit
On China
On India
On Global Inflation
On Currencies
On the US Debt
On the "Economics" of the Arab Spring
Working Papers
Books suggested by members

On the Welfare Implications of Automation

date Date: November 12, 2105
date Author(s): Maya Eden, Paul Gaggl
date Affiliation: World Bank

This paper establishes that the rise in the income share of information and communication technology accounts for half of the decline in labor income share in the United States. This decline can be decomposed into a sharp decline in the income share of "routine" labor - which is relatively more prone to automation - and a milder rise in the non-routine share. Quantitatively, this decomposition suggests large effects of information and communication technology on the income distribution within labor, but only moderate effects on the distribution of income between capital and labor. A production structure calibrated to match these trends suggests modest aggregate welfare gains from automation.

© 2011–2017 e-axes. All rights reserved. | Credits | Contact Us | Privacy Statement | Sat 20 Jan, 2018 01:16:10 AM
e-axes is proudly powered by Norder - Creative Solutions