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On the Welfare Implications of Automation / Eden, Maya.

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Eden, Maya
Contributor:
Eden, Maya
Gaggl, Paul
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Capital share.
E-business.
Economic theory & research.
Emerging markets.
ICT.
Investment & investment climate.
Job polarization.
Labor policies.
Labor share.
Macroeconomics and economic growth.
Private sector development.
Social protections and labor.
Local Subjects:
Capital share.
E-business.
Economic theory & research.
Emerging markets.
ICT.
Investment & investment climate.
Job polarization.
Labor policies.
Labor share.
Macroeconomics and economic growth.
Private sector development.
Social protections and labor.
Physical Description:
1 online resource (47 pages)
Place of Publication:
Washington, D.C. : The World Bank, 2015.
System Details:
data file
Summary:
This paper establishes that the rise in the income share of information and communication technology accounts for half of the decline in labor income share in the United States. This decline can be decomposed into a sharp decline in the income share of "routine" labor-which is relatively more prone to automation-and a milder rise in the non-routine share. Quantitatively, this decomposition suggests large effects of information and communication technology on the income distribution within labor, but only moderate effects on the distribution of income between capital and labor. A production structure calibrated to match these trends suggests modest aggregate welfare gains from automation.

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