Robots, factor intensities, and wage inequality

Jiancai Pi and Yanwei Fan

Asia-Pacific Journal of Accounting & Economics, 2023, vol. 30, issue 6, 1568-1586

Abstract: This paper investigates how robots affect wage inequality. We consider four cases, i.e. robots replacing skilled labor, robots replacing unskilled labor, robots replacing both skilled and unskilled labor, and robots serving as complements to human labor. Different from the existing literature on artificial intelligence and automation, we find that in all the four cases an increase in the importance of robots can increase or decrease wage inequality under different conditions. When robots are incorporated into the framework of wage inequality, factor intensities should be taken seriously.

Date: 2023
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DOI: 10.1080/16081625.2022.2078379

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Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

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