Guimarães, Luis and Gil, Pedro (2019): Explaining the labor share: automation vs labor market institutions.
This is the latest version of this item. Abstract
In this paper, we build a theoretical model to study the effects of automation and labor market institutions on the labor share. In our model, firms choose between two technologies: an automated technology and a manual technology. In this context, the labor share reflects both the average wage level (versus output) and the distribution of firms between the two technologies. Our model offers three main insights. First, automation-augmenting shocks reduce the labor share but […]
Full Post at mpra.ub.uni-muenchen.de