Automation and Unemployment: Help Is on the Way

32 Pages Posted: 17 Jul 2018

See all articles by Hideki Nakamura

Hideki Nakamura

Osaka City University

Joseph Zeira

Hebrew University of Jerusalem - Department of Economics; Centre for Economic Policy Research (CEPR); LUISS Guido Carli, DPTEA

Multiple version iconThere are 2 versions of this paper

Date Written: June 26, 2018

Abstract

This paper presents a model of technical change that combines two lines of research together. It is a task based model, in which automation turns labor tasks to mechanized ones, and there is also a continuous addition of new labor tasks, as in the expanding variety literature. We impose three simple restrictions on the model. The first is that all new tasks are adopted. The second is that all new automations are adopted and the third is that the share of labor does not converge to zero in the long run. We show that these restrictions imply that unemployment due to automation is expected to converge to zero over time.

Keywords: Automation, Unemployment, Technical Change, Growth, Labor Income Share

JEL Classification: J64, O14, O30, O40

Suggested Citation

Nakamura, Hideki and Zeira, Joseph, Automation and Unemployment: Help Is on the Way (June 26, 2018). Available at SSRN: https://ssrn.com/abstract=3202622 or http://dx.doi.org/10.2139/ssrn.3202622

Hideki Nakamura

Osaka City University ( email )

3-3-138, Sugimoto
Sumiyoshi-ku
Osaka 558-8585
United States

Joseph Zeira (Contact Author)

Hebrew University of Jerusalem - Department of Economics ( email )

Mount Scopus
Jerusalem 91905, Jerusalem 91905
Israel
+972 2 588 3256 (Phone)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

LUISS Guido Carli, DPTEA ( email )

viale Pola 12
Roma, Roma 00198
Italy

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