The Macroeconomics of Automation: Data, Theory, and Policy Analysis

Nir Jaimovich (), Itay Saporta-Eksten (), Henry Siu and Yaniv Yedid-Levi
Additional contact information
Nir Jaimovich: University of Zurich
Itay Saporta-Eksten: Tel Aviv University
Authors registered in the RePEc Author Service: Itay Saporta Eksten

No 12913, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The U.S. economy has experienced a significant drop in the fraction of the population employed in middle wage, "routine task-intensive" occupations. Applying machine learning techniques, we identify characteristics of those who used to be employed in such occupations and show they are now less likely to work in routine occupations. Instead, they are either non-participants in the labor force or working at occupations that tend to occupy the bottom of the wage distribution. We then develop a quantitative, heterogeneous agent, general equilibrium model of labor force participation, occupational choice, and capital investment. This allows us to quantify the role of advancement in automation technology in accounting for these labor market changes. We then use this framework as a laboratory to evaluate various public policies aimed at addressing the disappearance of routine employment and its consequent impacts on inequality.

Keywords: universal basic income; labor force participation; routine employment; automation; polarization; unemployment insurance; retraining (search for similar items in EconPapers)
JEL-codes: E22 E24 J23 J24 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2020-01
New Economics Papers: this item is included in nep-big, nep-cmp, nep-ias and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Published - published in: Journal of Monetary Economics, 2021, 122, 1-16

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Related works:
Journal Article: The macroeconomics of automation: Data, theory, and policy analysis (2021)
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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