We show, theoretically and empirically, that the effects of technological change associated with automation and … is that better matches enjoy a comparative advantage in exploiting automation and a comparative disadvantage in … exploiting offshoring. It implies that automation (offshoring) may reduce (raise) employment by lengthening (shortening …

investment. This allows us to quantify the role of advancement in automation technology in accounting for these labor market …

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 … intermediate complexity are assigned to capital. Interior automation arises when the most skilled workers have a comparative …