Global value chains, the rise of the robots and human capital

It is often argued that robots will lead to the reshoring of activity from low wage countries to rich countries - the revival of manufacturing in rich countries. But smart robots are a capital biased technology which could potentially replace smart people. As a result the skill premium - the relative wage between a university graduate and a high school graduate - is declining in Europe. The expansion of higher education has been too aggressive in face of the capital bias of digital technology.