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Digital Challenges for the Welfare State

Werner Eichhorst () and Ulf Rinne ()

No 134, IZA Policy Papers from Institute of Labor Economics (IZA)

Abstract: Digitalization is the buzzword under which profound changes of the labor market can be summarized. Next to automation, i.e., the increasing use of robots, "intelligent" machines and more comprehensive algorithms that is no longer restricted to routine tasks, especially the emerging platform economy may pose significant "digital challenges" for the welfare state. This article sheds light on the potentially eroding foundations of the welfare state, it discusses tools for combating a potential digital divide on the individual level, and it proposes a new institutional perspective on firms, workers, and the welfare state.

Keywords: digitalization; robots; automation; future of work; industry 4.0; technological change; platform economy; welfare state (search for similar items in EconPapers)
JEL-codes: J08 J24 O33 O38 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2017-11
New Economics Papers: this item is included in nep-ict and nep-pay
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Citations: View citations in EconPapers (2) Track citations by RSS feed

Forthcoming in: CESifo Forum

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Journal Article: Digital Challenges for the Welfare State (2017) Downloads
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