On the Welfare Implications of Automation

This paper establishes that the rise in the income share of information and communication technology accounts for half of the decline in labor income share in the United States. This decline can be decomposed into a sharp decline in the income share of “routine” labor—which is relatively more prone to automation—and a milder rise in the non-routine share. Quantitatively, this decomposition suggests large effects of information and communication technology on the income distribution within labor, but only moderate effects on the distribution of income between capital and labor. A production structure calibrated to match these trends suggests modest aggregate welfare gains from automation.

Bibliographic Details

Main Authors:	Gaggl, Paul, Eden, Maya
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-11
Subjects:	SELF EMPLOYED, GROWTH RATES, EMPLOYMENT, SOCIAL COSTS, CONSUMPTION EXPENDITURES, CAPITAL MARKETS, CONSUMER DURABLES, ECONOMIC GROWTH, ACCOUNTING, PRODUCTION, COMMUNICATION TECHNOLOGIES, CAPITAL ACCUMULATION, STOCK, INFORMATION TECHNOLOGY, INCOME, DEPRECIATION, SERVICE OCCUPATIONS, LABOR ALLOCATION, EXCHANGE, INFORMATION, EXPORTS, ELASTICITY, ASSET, MARGINAL PRODUCT, NET CAPITAL, DISTRIBUTION OF INCOME, WELFARE, OPTIMIZATION, EFFECTS, LABOR ECONOMICS, DISTRIBUTION, EQUILIBRIUM, VARIABLES, CAPITAL STOCK, PRICE, TAX, INPUTS, REAL WAGES, RETURNS TO SCALE, NOMINAL CAPITAL, PAYMENTS, WEALTH, COMPUTER SYSTEMS, RENTS, ECONOMIC ANALYSIS, TRENDS, DRIVERS, COMMUNICATIONS, LABOR MARKET, CAPITAL INTENSITY, MARGINAL PRODUCTS, INVESTMENT BEHAVIOR, PRODUCTION STRUCTURE, COSTS, LABOR ALLOCATIONS, DEVELOPMENT ECONOMICS, EXTENSIVE, CAPITAL GAINS, CONSTANT RETURNS TO SCALE, BASE YEAR, PRODUCTIVITY, BARRIERS TO ENTRY, MARKETS, NET EXPORTS, ORGANIZATIONS, ACCUMULATION, LABOR, ELASTICITY OF SUBSTITUTION, CAPITAL STOCKS, UTILITY, INVENTORY, GAINS, REAL ESTATE, ECONOMIC RESEARCH, UNEMPLOYMENT, BLUE COLLAR OCCUPATIONS, INVESTORS, PRODUCTIVITY GROWTH, DATA AVAILABILITY, CONSUMPTION, FACTOR MARKETS, GENERAL EQUILIBRIUM, TECHNOLOGICAL CHANGE, VALUE ADDED, TAX INCENTIVE, AGGREGATE SUPPLY, CAPITAL, WAGES, INTERNATIONAL TRADE, BARRIERS, FUTURE, VALUE, PENSIONS, COMPETITIVENESS, MACROECONOMICS, OCCUPATIONS, EXPENDITURES, INCOMES, SHARE OF CAPITAL, MEASUREMENT, SHARES, AFFILIATED ORGANIZATIONS, ASSETS, BENCHMARK, PRODUCTION FUNCTION, ECONOMICS, ENDOGENOUS VARIABLES, SECRETARIES, OUTPUT, MANAGEMENT, FUNCTIONAL FORMS, TRADE, INVESTMENT RATES, GDP, GOODS, INVESTOR, THEORY, INTANGIBLE, GROWTH RATE, INVESTMENT, MACROECONOMIC ANALYSIS, SHARE, SUPPLY, AFFILIATED, OPTIMAL ALLOCATION, SHARE CAPITAL, LABOR SUPPLY, TAX POLICY, RETURN ON INVESTMENT, COMMUNICATION, DEMOGRAPHIC, ARBITRAGE, COMMUNICATION TECHNOLOGY, LABOR MARKETS, SAFETY, ADVERSE EFFECTS, PRICES, DEVELOPMENT POLICY,
Online Access:	http://documents.worldbank.org/curated/en/2015/11/25380579/welfare-implications-automation https://hdl.handle.net/10986/23453
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