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Does automation technology increase wage?

Ryosuke Shimizu and Shohei Momoda

Journal of Macroeconomics, 2023, vol. 77, issue C

Abstract: This paper examines the relationship between automation technology and wages. In the model, producers either choose automation or non-automation technology, whichever is more profitable. Furthermore, when producers introduce automation technology, they must pay fixed costs, which differ between industries. The main results of this paper indicate that the increased productivity of automation technology promotes automation, decreases labor income share, and also decreases wages when the level of automation diffusion is sufficiently high.

Keywords: Automation; Wage; Labor share decline; Technology choice (search for similar items in EconPapers)
JEL-codes: E24 J23 O3 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:77:y:2023:i:c:s0164070423000411

DOI: 10.1016/j.jmacro.2023.103541

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