Technological progress has drastically reduced the cost of automation, making it increasingly affordable to firms. For example, between 1995 and 2016, the price of industrial robots in Brazil decreased by 40 percent. This affordability has led to a surge in the adoption of robots in various industries. However, this trend has caused concern among economists and policymakers due to a growing body of evidence suggesting that automation may lead to job losses.
Nevertheless, technological progress has not only decreased the cost of labor‐replacing machines, such as robots, but also has caused a rapid decrease in the cost of labor‐complementing machines, […]
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