Mechanization, Task Assignment, and Inequality

41 Pages Posted: 7 Jan 2014 Last revised: 17 May 2021

See all articles by Kazuhiro Yuki

Kazuhiro Yuki

Kyoto University - Faculty of Economics

Date Written: May 2021

Abstract

Mechanization (or automation) has proceeded continuously since the Industrial Revolution and seems to have accelerated recently due to the rapid advancement of information technology. This paper theoretically examines long-run trends of mechanization, shifts of tasks humans perform, and earnings levels and inequality. Specifically, the paper develops a Ricardian model of task assignment and analyzes how improvements of productivities of machines and an increase in the relative supply of skilled workers affect task assignment (which factor performs which task), earnings levels and inequality, and aggregate output. The model succeeds in capturing the great majority of the long-run trends. The paper also explores possible future trends of the variables when information technology continues to grow rapidly.

Keywords: mechanization, automation, task assignment, earnings inequality, information technology

JEL Classification: J24, J31, N30, O14, O33

Suggested Citation

Yuki, Kazuhiro, Mechanization, Task Assignment, and Inequality (May 2021). Available at SSRN: https://ssrn.com/abstract=2375379 or http://dx.doi.org/10.2139/ssrn.2375379

Kazuhiro Yuki (Contact Author)

Kyoto University - Faculty of Economics ( email )

Kyoto 606-8501
Japan

HOME PAGE: http://www.econ.kyoto-u.ac.jp/~yuki/english.html

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