In economies where the price of labour is determined outside of competitive markets the question arises as to whether the observed evolution of wages is likely to contribute to a decline in unemployment. I develop and discuss a benchmark, the neutral wage policy, to which the actual evolution of...

How does population aging affect economic growth and factor shares in times of increasingly automatable production processes? The present paper addresses this question in a new macroeconomic model of automation where competitive firms perform tasks to produce output. Tasks require labor and...