Acemoglu, Daron, Restrepo, Pascual, (2016), “The race between machines and humans: Implications for growth, factor shares and jobs”, Voxeu, 5 July
Many economists throughout history have been proven wrong in predicting that technological progress will cause irreversible damage to the labour market. This column shows that so far, the labour market has always adapted to the replacement of jobs with capital, using evidence of new types of skilled jobs between 1970 and 2007. As long as the rate of automation of jobs by machines and the creation of new complex tasks for workers are balanced, there will be no major labour market decline. The nature of new technology, and its impact on future innovation potential, has important implications for labour stability.
Relevant Posts
- Semyon Malamud, Francesca Zucchi, (2016), “Liquidity, innovation, and endogenous growth“, ECB Working Paper 1919, June
- Vera Demary, Barbara Engels, (2016), “Collaborative Business Models and Efficiency – Potential Efficiency Gains in the European Union”, Cologne Institute for Economic Research, Impulse Paper No. 07, 29 April