Caselli, Francesco 
ORCID: 0009-0001-5191-7156 and Manning, Alan ORCID: 0000-0002-7884-3580
(2017)
Robot arithmetic: can new technology harm all workers or the average worker?
CEP Discussion Papers (CEPDP1497).
London School of Economics and Political Science. Centre for Economic Performance, London, UK.
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Abstract
It is well-established that new technology can cause large changes in relative wages and inequality. But there are also claims, based largely on verbal expositions, that new technology will harm workers on average or even all workers. Using formal models (which impose logical consistency and clear links between assumptions and conclusions) we show – under plausible assumptions - that new technology will cause average wages to rise if the prices of investment goods fall relative to consumer goods (a condition supported by the data) and if the new technologies do not lead to a fall in market competition. Some groups of workers must gain but others may be harmed. However, if workers can freely choose their occupation, or redistribution among workers is possible, all workers can gain
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://cep.lse.ac.uk/ |
| Additional Information: | © 2017 The Authors |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| JEL classification: | J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc. O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes |
| Date Deposited: | 30 Jan 2018 14:46 |
| Last Modified: | 01 Oct 2024 03:19 |
| Funders: | Economic and Social Research Council |
| URI: | http://eprints.lse.ac.uk/id/eprint/86589 |
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