NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Anna M. Salomons

Utrecht School of Economics
Utrecht University
Kriekenpitplein 21-22
3584 EC Utrecht
The Netherlands

E-Mail: a.m.salomons@uu.nl
Institutional Affiliation: Utrecht University

NBER Working Papers and Publications

July 2018Is Automation Labor-Displacing? Productivity Growth, Employment, and the Labor Share
with David Autor: w24871
Many technological innovations replace workers with machines, but this capital-labor substitution need not reduce aggregate labor demand because it simultaneously induces four countervailing responses: own-industry output effects; cross-industry input–output effects; between-industry shifts; and final demand effects. We quantify these channels using four decades of harmonized cross-country and industry data, where we measure automation as industry-level movements in total factor productivity (TFP) that are common across countries. We find that automation displaces employment and reduces labor's share of value-added in the industries in which it originates (a direct effect). In the case of employment, these own-industry losses are reversed by indirect gains in customer industries and induce...

Published: David Autor & Anna Salomons, 2018. "Is Automation Labor Share-Displacing? Productivity Growth, Employment, and the Labor Share," Brookings Papers on Economic Activity, vol 2018(1), pages 1-87.

 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us