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Growth, automation, and the long-run share of labor
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Ray, Debraj and Mookherjee, Dilip (2022) Growth, automation, and the long-run share of labor. Review of Economic Dynamics, 46 . pp. 1-26. doi:10.1016/j.red.2021.09.003 ISSN 1094-2025.
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Official URL: http://dx.doi.org/10.1016/j.red.2021.09.003
Abstract
We study the long run implications of workplace automation induced by capital accumulation. We describe a minimal set of sufficient conditions for sustained growth, along with a declining labor share of income in the long run: (i) a basic asymmetry between physical and human capital; (ii) the technical possibility of automation in each sector; (ii) a self-replication condition on the production function for robot services; (iv) asymptotic homotheticity (more generally neutrality) of demand, and (v) a minimal degree of patience or intergenerational altruism among a fraction of households. However, the displacement of human labor is gradual, and absolute real wages could rise indefinitely. The results obtain in the absence of any technical progress; they extend to endogenous technical progress even if such progress is not biased ex ante in favor of automation.
Item Type: | Journal Article | ||||||||
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Subjects: | H Social Sciences > HD Industries. Land use. Labor | ||||||||
Divisions: | Faculty of Social Sciences > Economics | ||||||||
Library of Congress Subject Headings (LCSH): | Automation , Automation -- Human factors, Labor supply -- Effect of automation on , Labor supply -- Effect of technological innovations on, Human capital | ||||||||
Journal or Publication Title: | Review of Economic Dynamics | ||||||||
Publisher: | Elsevier | ||||||||
ISSN: | 1094-2025 | ||||||||
Official Date: | October 2022 | ||||||||
Dates: |
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Volume: | 46 | ||||||||
Page Range: | pp. 1-26 | ||||||||
DOI: | 10.1016/j.red.2021.09.003 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Date of first compliant deposit: | 22 February 2022 | ||||||||
Date of first compliant Open Access: | 28 March 2023 |
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