Automation: Theory, Evidence, and Outlook

Pascual Restrepo

No 31910, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This article reviews the literature on automation and its impact on labor markets, wages, factor shares, and productivity. I first introduce the task model and explain why this framework offers a compelling way to think about recent labor market trends and the effects of automation technologies. The task model clarifies that automation technologies operate by substituting capital for labor in a widening range of tasks. This substitution reduces costs, creating a positive productivity effect, but also reduces employment opportunities for workers displaced from automated tasks, creating a negative displacement effect. I survey the empirical literature and conclude that there is wide qualitative support for the implications of task models and the displacement effects of automation. I conclude by discussing shortcomings of the existing literature and avenues for future research.

JEL-codes: E24 J20 (search for similar items in EconPapers)
Date: 2023-11
New Economics Papers: this item is included in nep-lma and nep-tid
Note: EFG
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Citations: View citations in EconPapers (9)

Published as Pascual Restrepo, 2024. "Automation: Theory, Evidence, and Outlook," Annual Review of Economics, .

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