EconPapers    
Economics at your fingertips  
 

How can robots affect wage inequality?

Clemens Lankisch, Klaus Prettner () and Alexia Fürnkranz-Prskawetz

Economic Modelling, 2019, vol. 81, issue C, 161-169

Abstract: We explain the simultaneous presence of i) increasing per capita output, ii) declining real wages of low-skilled workers, and iii) a rising wage premium of higher education within a model of economic growth in the age of automation. The theoretical implications are consistent with the data for the United States since the 1970s. Thus, automation contributes towards our understanding of the driving forces of rising inequality. The immediate policy conclusion is that investments in higher education can help to soften the negative effects of automation.

Keywords: Automation; Declining real wages of low-skilled workers; Income inequality; Long-run economic growth; Skill premium (search for similar items in EconPapers)
JEL-codes: O11 O41 D63 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999318310629
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:81:y:2019:i:c:p:161-169

DOI: 10.1016/j.econmod.2018.12.015

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-10-27
Handle: RePEc:eee:ecmode:v:81:y:2019:i:c:p:161-169