“…For example, factories start using more technology makes workers redundant (Choudhry and van Ark, 2010). Labor displacement occurs with an increase in TFP through various mechanisms like automation (Acemoglu and Restrepo, 2019), use of artificial intelligence (Gruetzemacher et al, 2020), robotization (Jung and Lim, 2020), innovation (Woltjer et al, 2021;Zhu et al, 2021), implementation of Industry 4.0 production technologies (Fromhold-Eisebith et al, 2021) and digitalization (Balsmeier and Woerter, 2019). However, although an increase in TFP is labor displacing, various "compensating mechanisms" might be labor augmenting (International Labor Organization, 2005;Calvino and Virgillito, 2018;Dosi et al, 2021).…”