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We present a three sector OLG model with a homogenous output good that is produced with traditional or robot technology …. 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 …
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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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Recent evidence suggests that automation technologies entail a trade-off between productivity gains and employment losses for the economies that adopt them. This paper casts doubts on this trade-off in the context of a developing country. It shows significant productivity and employment gains...
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