period of rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more exposed … 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 played a key role in cushioning …

automation, skill-biased technical change, offshoring, and worker training. Using the model, I characterize how wages, the … to workers. I introduce automation as the choice of the optimal size and location of a mass of identical robots in the … task space. Automation displaces workers by replacing them in the performance of tasks, generating a cascading effect on …