Category: Automation Impact on Jobs

A more realistic, less alarmist Oxford study on automation and jobs

A more realistic, less alarmist Oxford study on automation and jobs

In my book, Silicon Collar and in several blogs I have critiqued the 2013 study by two Oxford researchers which reached this alarmist conclusion about the impact of modern day machines on jobs: “According to our estimates, about 47% of total U.S. employment is at risk.”

I found several flaws in their study. With such a scary conclusion, it was irresponsible for them to not even lay out a timeline. They also did not appear to do a reality check for the job categories they analyzed. They calculated a high 0.79 “susceptibility to computerisation factor” (with 1.0 being the highest) […]

Here’s new evidence minimum wage hikes result in workers being replaced by robots

Here's new evidence minimum wage hikes result in workers being replaced by robots

There is new evidence that raising the minimum wage pushes business owners to replace low-skilled workers with automation. And it shows that old, young, female and black low-skilled workers face the highest levels of unemployment after a minimum wage increase.

Economists Grace Lordan of the London School of Economics and David Neumark of UC Irvine studied 35 years of government census data for their working paper, which was released in August, titled " People Versus Machines: The Impact of Minimum Wages on Automatable Jobs ."

"Based on [current population survey] data from 1980-2015, we find that increasing the minimum wage decreases […]

How do we move forward in the ‘new economy’?

How do we move forward in the ‘new economy’?

New laws on free public Internet access (Republic Act [RA] 10929) and free-education tuition (RA 10931) have been getting ample exposure, as the current administration seeks to advance its agenda for inclusive development. While these are notable steps toward efforts to boost prospects for economic growth through enhancing productivity and strengthening competitiveness, there are more significant technological shifts already reshaping our lives at breathtaking speed.

In 2016 World Economic Forum (WEF) founder Professor Klaus Schwab has written the book entitled The Fourth Industrial Revolution about the fusion of new technologies in mainstream discussion. He asserts that “there has never been […]

Here’s new evidence minimum wage hikes result in workers being replaced by robots

Here's new evidence minimum wage hikes result in workers being replaced by robots

There is new evidence that raising the minimum wage pushes business owners to replace low-skilled workers with automation. And it shows that old, young, female and black low-skilled workers face the highest levels of unemployment after a minimum wage increase.

Economists Grace Lordan of the London School of Economics and David Neumark of UC Irvine studied 35 years of government census data for their working paper, which was released in August, titled " People Versus Machines: The Impact of Minimum Wages on Automatable Jobs ."

"Based on [current population survey] data from 1980-2015, we find that increasing the minimum wage decreases […]

If you don’t want to lose your job to a robot, don’t think like one

If you don’t want to lose your job to a robot, don’t think like one

Don’t be this guy The American job market holds few guarantees, and its future might hold even fewer. But in making critical career decisions, here’s a question you might ask yourself:

Am I a Roomba?

Chris Adami, a theoretical physicist and Michigan State University professor with a knack for breaking down artificial intelligence into simple terms, explains.A Roomba – the robotic floor sweeper – he said, is a familiar and easily understood example of how artificial intelligence works: “It senses the environment it’s in. It moves around, using an intelligent algorithm. Its reaction is appropriate given the sensory input it has.”This, […]

Everyone thinks that automation will take our jobs. The evidence disagrees.

Everyone thinks that automation will take our jobs. The evidence disagrees.

Last year, the Japanese company SoftBank opened a cell phone store in Tokyo and staffed it entirely with sales associates named Pepper. This wasn’t as hard as it sounds, since all the Peppers were robots.

Humanoid robots, to be more precise, which SoftBank describes as "kindly, endearing, and surprising." Each Pepper is equipped with three multidirectional wheels, an anticollision system, multiple sensors, a pair of arms, and a chest-mounted tablet that allows customers to enter information. Pepper can "express his own emotions" and use a 3-D camera and two HD cameras "to identify movements and recognize the emotions on the […]

Rep. Dollens: As automation threatens jobs, initiatives seek to prepare workers for future

In 2014, I worked as a roughneck on a drilling rig that had been built in the 1970s. This rig, four decades old, required countless man hours to ensure that it ran smoothly. Everything — from throwing chains, working the tongs and making connections — had to be done by hand. It was grueling work, but I valued the friendships I built out there with those working beside me.

About a year later, I was moved to a new rig, this one state-of-the art. What used to take four people working out in the sun could now be done by […]

Richard Branson says universal basic income ‘important’ as tech reduces jobs

Richard Branson says universal basic income 'important' as tech reduces jobs

CEO and Founder of Virgin Group Sir Richard Branson speaks at Climate Week NYC event at the Morgan Library and Museum in New York City on September 22, 2014. On August 14, the billionaire came out in favor of universal basic income due to the possibility technology will reduce jobs. Photo by John Angelillo/UPI | License Photo

Aug. 17 (UPI) — Billionaire Sir Richard Branson said in a blog post that universal basic income might be a valid method of dealing with the advent of technology reducing the overall number of jobs for workers.

"A lot of exciting new innovations are […]

Minimum Wage Hikes and Automation Risks

Minimum Wage Hikes and Automation Risks

A couple years ago, I wrote , Other studies show that an increased minimum wage causes firms to incrementally move toward automation. Now, this too could be seen as a trade-off: automation and technological progress tend to make processes more efficient and therefore increase productivity (and eventually wages ), raising living standards for consumers (which include the poor). Nonetheless, the point is that while unemployment in the short-term may be insignificant, the long-term effects could be much bigger. For example, one study finds that minimum wage hikes lead to lower rates of job growth: about 0.05 percentage points a […]

Study: In the end, the machine will win

Study: In the end, the machine will win

If you’ve been following the ongoing debate over the “Fight for 15” and steep increases in the minimum wage, you’ll want to check out this article from James Pethokoukis at the American Enterprise Institute. He’s examining the new NBER working paper , “ People Versus Machines: The Impact of Minimum Wages on Automatable Jobs ” by Grace Lordan and David Neumark. In case you haven’t guessed from the title, it’s an analysis of the effect of higher minimum wages on the rate at which business shift from hiring lower skill, minimum wage workers to implementing automated / robotic solutions.

Here’s […]