Akar, Gizem; Casalone, Giorgia; Zagler, Martin - 2022
. 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 …