Robot arithmetic: new technology and wages
Francesco Caselli and
Alan Manning ()
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
Existing economic models show how new technology can cause large changes in relative wages and inequality. But there are also claims, based largely on verbal expositions, that new technology can harm workers on average or even all workers. This paper shows – under plausible assumptions - that new technology is unlikely to cause wages for all workers to fall and will cause average wages to rise if the prices of investment goods fall relative to consumer goods (a condition supported by the data). We outline how results may change with different assumptions.
JEL-codes: D31 G31 J22 J24 J31 O31 O33 (search for similar items in EconPapers)
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Published in American Economic Review: Insights, 1, June, 2019, 1(1), pp. 1-12
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:87371
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