Global Value Chains, the Rise of the Robots and Human Capital

Dalia Marin

Wirtschaftsdienst, 2018, vol. 98, issue 1, 46-49

Abstract: Abstract This essay examines whether robots will lead to the reshoring of activity from low-wage countries to rich countries, leading to a revival of manufacturing in rich countries. I argue that reshoring will not lead to an employment boom in rich countries, because the brilliant robots are a capital-biased technology, and as such, they potentially replace smart people. As a result, the skill premium – the wage discrepancy between a university graduate and a high school graduate – is declining in Europe. I argue further that the expansion of higher education has been too aggressive in light of the capital bias of digital technology.

JEL-codes: D23 F1 O3 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10273-018-2276-9

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