Automation and heterogeneous earnings dynamics

Trevor Gallen and Soojin Kim

Economics Letters, 2025, vol. 255, issue C

Abstract: We examine the effects of automation on workers’ earnings dynamics in the United States using micro-level panel data. We find a significant and adverse impact of automation on earnings, particularly for older individuals, those in routine occupations, or during recessionary periods. However, our analysis of taxes and program participation suggests that the status-quo tax and transfer system mitigates these losses by half.

Keywords: Automation; Earnings dynamics; Heterogeneity; Policy (search for similar items in EconPapers)
JEL-codes: H3 J3 O3 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003556

DOI: 10.1016/j.econlet.2025.112518

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