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We study how technology adoption and changes in global value chain (GVC) integration jointly affect labor shares and business function specialization in a sample of 14 manufacturing industries in 14 European countries in 1999-2011. Our main contribution is to highlight the indirect effect of...
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period marked by the rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more … input to the EUROMOD microsimulation model, we find that automation had minor effects on income inequality. Household labour … income diversification and tax and welfare policies largely absorbed labour market shocks caused by automation. Transfers …
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of how automation and artificial intelligence could reshape society and the economy. However, technological shifts in …
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