TECHNOLOGICAL CHANGE AND THE LABOUR MARKET: Higher pay encourages automation of low-wage jobs – but new employment opportunities emerge for those workers

TECHNOLOGICAL CHANGE AND THE LABOUR MARKET: Higher pay encourages automation of low-wage jobs – but new employment opportunities emerge for those workers

Higher costs of employing staff in low-wage occupations expedite the automation of those jobs that involve routine cognitive tasks. But unlike the automation of middle-income occupations, low-wage automation is not nearly as costly for individual workers since there is offsetting growth in the availability of similarly paid jobs. For example, the introduction of self-scanners in retail outlets replaces cashiers but creates new jobs that require workers to assist or monitor customer usage with the technology.

These are the central findings of research by Daniel Aaronson and Brian Phelan , which is published in the January 2019 edition of The Economic […]

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