higher wages at the bottom make interior automation less likely. Starting with interior automation, a reduction in the cost …We develop an assignment model of automation. Each of a continuum of tasks of variable complexity is assigned to either … capital or one of a continuum of labor skills. We characterize conditions for interior automation, whereby tasks of …

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

This paper studies the effects of automation in economies with labor market distortions that generate worker rents--wages … above opportunity cost--in some jobs. We show that automation targets high-rent tasks, dissipating rents and amplifying wage … losses from automation. It also reduces within-group wage dispersion for exposed groups. Automation-driven rent dissipation …

innovation can be systematically distorted. This paper builds a simple model of endogenous technology, which generalizes existing … suggestive evidence that equilibrium distortions in the direction of technology can be substantial in the context of industrial … automation, health care, and energy, and correcting these distortions could have sizable welfare benefits …

How should the government respond to automation? We study this question in a heterogeneous agent model that takes … borrowing is limited. We first show that these frictions result in inefficient automation. Firms fail to internalize that … where the government can tax automation but lacks redistributive tools to fully overcome borrowing frictions. The …

wages for cotton weavers did not rise for decades. As E.P. Thompson emphasized, automation forced workers into unhealthy … factories with close surveillance and little autonomy. Automation can increase wages, but only when accompanied by new tasks … automation in the textile industry. Despite cotton textiles becoming one of the largest sectors in the British economy, real …

created. In a static version where capital is fixed and technology is exogenous, automation reduces employment and the labor … share, and may even reduce wages, while the creation of new tasks has the opposite effects. Our full model endogenizes … capital accumulation and the direction of research towards automation and the creation of new tasks. If the long-run rental …

This review considers the evolution of economic thinking on the relationship between digital technology and inequality …, the task polarization model, the automation-reinstatement race, and the era of Artificial Intelligence uncertainty. The … effects of technology for productivity and welfare has eroded as understanding has advanced. Given this intellectual …

ever more complex tasks amenable to automation. The effects on wages depend on a race between automation and capital … accumulation. If automation proceeds sufficiently slowly, then there is always enough work for humans, and wages may rise forever …. By contrast, if the complexity of tasks that humans can perform is bounded and full automation is reached, then wages …

productivity growth as well as local exposures to global shocks--technology, trade, immigration, and population aging--predict the …