Will automation destroy work? The debate on this question has become polarized. Doomsayers think the answer is “yes.” Techno-optimists claim that because past technological change has increased the demand for labor and wages, this time won’t be any different.
This polarization notwithstanding, to formulate effective policy it is important to think clearly about the impact of automation on work.
The economists Daron Acemoglu and Pascual Restrepo agree with the doomsayers that automation will replace workers in tasks that they previously performed. They call this the displacement effect. This effect decouples wages and output per worker and results in a decline in […]
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