What Are the Labor and Product Market Effects of Automation? New Evidence from France

Philippe Aghion (), Céline Antonin, Simon Bunel and Xavier Jaravel
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Philippe Aghion: Harvard University

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Abstract: What are the effects of automation in the labor and product markets? A host of factors may be at play. Automating the production process may displace certain workers, raising the possibility of technological unemployment, but these displacement effects could be offset by a productivity effect. Automation may induce productivity gains, increase market demand and the scale of production, and in turn increase labor demand. Depending on the extent to which productivity gains are passed through to consumers by producers, consumers could benefit from lower prices or producers could retain higher profits. Finally, because of business-stealing effects from firms that automate and displace their competitors, the industry-level employment and the price and profit effects of automation may differ from their firm-level or plant-level impacts. [First paragraph]

Keywords: Automation; Employment; Plant-level; Firm-level; Labor market; Product market; Manufacturing (search for similar items in EconPapers)
Date: 2020-07-29
Note: View the original document on HAL open archive server: https://hal.science/hal-03384668
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Citations: View citations in EconPapers (11)

Published in Research Briefs in Economic Policy, 2020, 225, pp.1-2

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Related works:
Working Paper: What Are the Labor and Product Market Effects of Automation? New Evidence from France (2020)
Working Paper: What Are the Labor and Product Market Effects of Automation? New Evidence from France (2020)
Working Paper: What Are the Labor and Product Market Effects of Automation? New Evidence from France (2020)
Working Paper: What Are the Labor and Product Market Effects of Automation? New Evidence from France (2020)
Working Paper: What Are the Labor and Product Market Effects of Automation? New Evidence from France (2020)
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