Quotation Prettner, Klaus, Strulik, Holger. 2020. Innovation, Automation, and Inequality: Policy Challenges in the Race against the Machine. Journal of Monetary Economics.


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Abstract

The effects of automation on economic growth, education, and inequality are analyzed using an R&D-driven growth model with endogenous education in which high-skilled workers are complements to machines and low-skilled workers are substitutes for machines. The model predicts that automation leads to an increasing share of college graduates, increasing income and wealth inequality, and a declining labor share. We show that standard policy suggestions for the age of automation can trigger unintended side effects on inequality, growth, and welfare, irrespective of whether they are financed by progressive wage taxation or by a robot tax.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Journal article
Journal Journal of Monetary Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-A+, WH-A
Language English
Title Innovation, Automation, and Inequality: Policy Challenges in the Race against the Machine
Year 2020
Reviewed? Y
URL https://www.sciencedirect.com/science/article/pii/S0304393219301965?via%3Dihub
DOI https://doi.org/10.1016/j.jmoneco.2019.10.012
Open Access Y
Open Access Link https://www.sciencedirect.com/science/article/pii/S0304393219301965

Associations

People
Prettner, Klaus (Details)
External
Strulik, Holger (University of Göttingen, Germany)
Organization
Department of Economics (Crespo Cuaresma) (Details)
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