A task-based approach to inequality

This paper reviews recent work on how automation and task displacement have contributed to labour share declines and inequality in the US labour market. We summarise the basic building blocks of a task-based framework in which a set of tasks is allocated between capital, skilled labour and unskilled labour. Automation, which corresponds to the use of new technologies expanding the set of tasks that can be performed by capital, always reduces the labour share in value added and may depress overall wages and employment. The negative effects of automation on labour share and its potentially adverse consequences for labour […]

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