Looking Ahead at the Effects of Automation in an Economy with Matching Frictions

Guimarães, Luís; Gil, Pedro Mazeda

doi:10.2139/ssrn.4097610

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2023

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“…Prettner and Strulik (2020) demonstrated that automation reduces demand for low‐skilled labour but increases demand for high‐skilled labour. Cords and Prettner (2022) and Guimaraes and Gil (2022a), (2022b) investigated how automation affects workers' employment with matching friction. Acemoglu and Restrepo (2018), Hémous and Olsen (2022), and Nakamura and Zeira (2023) examined the feedback mechanisms between automation and the creation of new labour tasks.…”

Section: Related Literaturementioning

confidence: 99%

Can displaced workers have a fresh start?

Nakamura

2023

Metroeconomica

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This study considers low‐ability workers with the difference in their specialization areas and investigates the consequence of automation. There are two findings. First, owing to automation, it is more difficult for displaced workers than for other workers to find a new job, because these displaced workers lose their suitable jobs. Consequently, the unemployment rate increases with an increase in the number of displaced workers. Second, unless an additional increase in unsuitable jobs is large under the introduction of new tasks, automation does not necessarily increase the unemployment rate because it is less difficult for workers to find a new job.

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Section: Related Literaturementioning

confidence: 99%

Can displaced workers have a fresh start?

Nakamura

2023

Metroeconomica

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Looking Ahead at the Effects of Automation in an Economy with Matching Frictions

Cited by 1 publication

References 53 publications

Can displaced workers have a fresh start?

Can displaced workers have a fresh start?

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