Citation

Discussion Paper Details

Please find the details for DP12974 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Automation and Unemployment: Help is on the Way

Author(s): Hideki Nakamura and Joseph Zeira

Publication Date: June 2018

Keyword(s): automation, growth, Labor Income Share, technical change and unemployment

Programme Area(s): Macroeconomics and Growth

Abstract: This paper presents a model of technical change that combines two lines of research together. It is a task based model, in which automation turns labor tasks to mechanized ones, and there is also a continuous addition of new labor tasks, as in the expanding variety literature. We impose three simple restrictions on the model. The first is that all new tasks are adopted. The second is that all new automation innovations are adopted and the third is that the share of labor does not converge to zero in the long run. We show that these restrictions imply that unemployment due to automation is expected to converge to zero over time.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12974

Bibliographic Reference

Nakamura, H and Zeira, J. 2018. 'Automation and Unemployment: Help is on the Way'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=12974