The macroeconomics of automation: Data, theory, and policy analysis

Nir Jaimovich, Itay Saporta-Eksten, Henry Siu and Yaniv Yedid-Levi
Authors registered in the RePEc Author Service: Itay Saporta Eksten

Journal of Monetary Economics, 2021, vol. 122, issue C, 1-16

Abstract: The decline in middle-wage occupations and rise in automation over the last decades are at the center of policy discussions. We develop an empirically relevant general equilibrium model that features endogenous labor force participation, occupational choice, and automation capital. We use the model to consider two types of policies: the retraining of workers who were adversely affected by automation, and redistribution policies that transfer resources to these workers. Our framework emphasizes general equilibrium effects such as displacement effects of retraining programs, complementarities between the factors of production, and the effects of distortionary taxation that is required to fund these programs.

Keywords: Polarization; Automation; Routine employment; Labor force participation; Universal basic income (search for similar items in EconPapers)
JEL-codes: E24 E6 J24 O33 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Working Paper: The Macroeconomics of Automation: Data, Theory, and Policy Analysis (2020)
Working Paper: The Macroeconomics of Automation: Data, Theory, and Policy Analysis (2020)
Working Paper: The Macroeconomics of Automation: Data, Theory, and Policy Analysis (2020)
Working Paper: The macroeconomics of automation: data, theory, and policy analysis (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:122:y:2021:i:c:p:1-16

DOI: 10.1016/j.jmoneco.2021.06.004

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