The Robots Are Coming And Cutting Employment

Daron Acemoglu of MIT and Pascual Restrepo of Boston University find that robots really do decrease human employment. As robots and other computer-assisted technologies take over tasks previously performed by labor, there is increasing concern about the future of jobs and wages. We analyze the effect of the increase in industrial robot usage between 1990 and 2007 on US local labor markets. Using a model in which robots compete against human labor in the production of different tasks, we show that robots may reduce employment and wages, and that the local labor market effects of robots can be estimated by regressing the change in employment and wages on the exposure to robots in each local labor market —defined from the national...
Source: FuturePundit - Category: Research Authors: Source Type: blogs