(TFP) that are common across countries. We find that automation displaces employment and reduces labor's share of value … harmonized cross-country and industry data, where we measure automation as industry-level movements in total factor productivity …-added in the industries in which it originates (a direct effect). In the case of employment, these own-industry losses are …

Using a quantitative model that features technical progress in automation and endogenous skill choice, we show that …, given the current U.S. tax system, a sustained fall in automation costs can lead to a massive rise in income inequality. We …

control (CNC), an important type of flexible automation which can significantly increase productivity, product variety and …

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 …

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 …

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 …

During the last four decades, the U.S. has experienced a fall in the employment in middle-wage, "routine …, 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 …

employment by 1.14–1.96%, but in this case efficiency can be increased by imposing an additional automation tax to reduce the … lower capital taxes with automation taxes can increase employment much more than the uniform reductions in capital taxes …. As a consequence, it has promoted inefficiently high levels of automation. Moving from the US tax system in the 2010s to …

. 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 …

I revisit the General Theory's discussion of the role of wages in employment determination through the lens of the New … employment, and in determining the welfare impact of enhanced wage flexibility. I show that the latter is not always welfare …