2015 OntheWelfareImplicationsofAutom

• (Eden & Gaggl, 2015) ⇒ Maya Eden, and Paul Gaggl. (2015). “On the Welfare Implications of Automation.” In: Social Science Research Network Journal. doi:10.2139/ssrn.2432313

Subject Headings: Labor's Share, Capital's Share, Routine Labor.

Cited By

• http://scholar.google.com/scholar?q=%222015%22+On+the+Welfare+Implications+of+Automation

Quotes

Author Keywords

• Labor share; capital share; job polarization; ICT

Abstract

We establish that the rise in the income share of information and communication technology (ICT) capital accounts for half of the decline in the US labor income share. The decline in the labor share 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 income share of non-routine labor. Quantitatively, this decomposition suggests that ICT has large effects on the distribution of income 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, even within a representative agent setup in which redistribution is frictionless.

References

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	Author	volume	Date Value	title	type	journal	titleUrl	doi	note	year
2015 OntheWelfareImplicationsofAutom	Maya Eden Paul Gaggl			On the Welfare Implications of Automation				10.2139/ssrn.2432313		2015