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This paper considers the implications for developing countries of a new wave of technological change that substitutes pervasively for labor. It makes simple and plausible assumptions: the AI revolution can be modeled as an increase in productivity of a distinct type of capital that substitutes...
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that are more exposed to automation in the U.S. through trade fared in exports and employment outcomes. The results show … growth in exports per worker from Mexico to the U.S. by 6.7 percent. Higher exposure to U.S. automation did not affect wage ….S. automation reduced manufacturing wage employment in areas where occupations were initially more susceptible to being automated …
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