We provide an argument for long-term automation and decline in the labor income share, driven by capital accumulation … rescaled in the same way. Then ongoing capital accumulation gives rise to progressive automation, and the share of labor income …

, and investment in physical and automation capital. We first use the model to evaluate the distributional consequences of … automation. We find heterogeneity in its impact across different occupations, leading to a significant polarization in welfare … redistributive policies that transfer resources from those who benefit from automation to those who bear the brunt of its costs. We …

We use a model of automation to show that with the current U.S. tax system, a fall in automation costs could lead to a … there is partial automation …

central role of automation and new tasks in recent labor market trends. We also explain how general equilibrium effects …

. Low-skill (high-skill) automation corresponds to tasks performed by low-skill (high-skill) labor being taken over by … capital. Automation displaces the type of labor it directly affects, depressing its wage. Through ripple effects, automation … also affects the real wage of other workers. Counteracting these forces, automation creates a positive productivity effect …

created. In a static version where capital is fixed and technology is exogenous, automation reduces employment and the labor … capital accumulation and the direction of research towards automation and the creation of new tasks. If the long-run rental … rate of capital relative to the wage is sufficiently low, the long-run equilibrium involves automation of all tasks …

This paper points out that modeling automation as factor-augmenting technological change has several unappealing … reduce the equilibrium wage (for realistic parameter values). This approach to automation also enables a discussion of … capital, the deepening of automation (whereby machines become more productive in tasks that are already automated), and the …

. As a consequence, it has promoted inefficiently high levels of automation. Moving from the US tax system in the 2010s to … restore the optimal level of automation. If moving to optimal taxes is infeasible, more modest reforms can still increase … employment by 1.14-1.96%, but in this case efficiency can be increased by imposing an additional automation tax to reduce the …