Effects of technological change and automation on industry structure and (wage-)inequality: insights from a dynamic task-based model

Herbert Dawid and Michael Neugart

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

Abstract: The advent of artificial intelligence is changing the task allocation of workers and machines in firms’ production processes with potentially wide ranging effects on workers and firms. We develop an agent-based simulation framework to investigate the consequences of different types of automation for industry output, the wage distribution, the labor share, and industry dynamics. It is shown how the competitiveness of markets, in particular barriers to entry, changes the effects that automation has on various outcome variables, and to which extent heterogeneous workers with distinct general skill endowments and heterogeneous firms featuring distinct wage offer rules affect the channels via which automation changes market outcomes.

Date: 2024-06-25
New Economics Papers: this item is included in nep-ain, nep-cmp, nep-hme and nep-tid
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Published in Journal of Evolutionary Economics 1 (2024-06-25) : pp. 35-63

Downloads: (external link)
https://tuprints.ulb.tu-darmstadt.de/27326
https://doi.org/10.1007/s00191-022-00803-5

Related works:
Journal Article: Effects of technological change and automation on industry structure and (wage-)inequality: insights from a dynamic task-based model (2023)
Working Paper: Effects of technological change and automation on industry structure and (wage-)inequality: insights from a dynamic task-based model (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:dar:wpaper:146300

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