TY - JOUR
T1 - The macroeconomics of automation
T2 - Data, theory, and policy analysis
AU - Jaimovich, Nir
AU - Saporta-Eksten, Itay
AU - Siu, Henry
AU - Yedid-Levi, Yaniv
N1 - Publisher Copyright:
© 2021 Elsevier B.V.
PY - 2021/9
Y1 - 2021/9
N2 - The decline in middle-wage occupations and rise in automation over the last decades are at the center of policy discussions. We develop an empirically relevant general equilibrium model that features endogenous labor force participation, occupational choice, and automation capital. We use the model to consider two types of policies: the retraining of workers who were adversely affected by automation, and redistribution policies that transfer resources to these workers. Our framework emphasizes general equilibrium effects such as displacement effects of retraining programs, complementarities between the factors of production, and the effects of distortionary taxation that is required to fund these programs.
AB - The decline in middle-wage occupations and rise in automation over the last decades are at the center of policy discussions. We develop an empirically relevant general equilibrium model that features endogenous labor force participation, occupational choice, and automation capital. We use the model to consider two types of policies: the retraining of workers who were adversely affected by automation, and redistribution policies that transfer resources to these workers. Our framework emphasizes general equilibrium effects such as displacement effects of retraining programs, complementarities between the factors of production, and the effects of distortionary taxation that is required to fund these programs.
KW - Automation
KW - Labor force participation
KW - Polarization
KW - Routine employment
KW - Universal basic income
UR - http://www.scopus.com/inward/record.url?scp=85111519072&partnerID=8YFLogxK
U2 - 10.1016/j.jmoneco.2021.06.004
DO - 10.1016/j.jmoneco.2021.06.004
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AN - SCOPUS:85111519072
SN - 0304-3932
VL - 122
SP - 1
EP - 16
JO - Journal of Monetary Economics
JF - Journal of Monetary Economics
ER -