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We develop a macroeconomic theory of the division of household tasks between servants and own work and how it is affected by automation in households and firms. We calibrate the model for the U.S. and apply it to explain the historical development of household time use and the distribution of...
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. The traditional sector produces with labor and capital, whereas the modern sector employs robots instead of labor. We find … that little can prevent the ascent of a modern economy. In particular, whilst robots are perfect substitutes to labor in … produces robots using the homogeneous output good. We find that wages fall with a relative increase in productivity in the …
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We study the effects of robot exposure on worker flows in 16 European countries. Overall, we find small negative effects on job separations and small positive effects on job findings. Labour costs are shown to be a major driver of cross-country differences: in countries with lower labour costs,...
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