Automation and Unemployment: Help is on the Way

35 Pages Posted: 11 Jun 2018 Last revised: 23 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 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 automation innovations 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, growth, Labor Income Share, technical change, unemployment

JEL Classification: J64, O14, O30, O40

Suggested Citation

Nakamura, Hideki and Zeira, Joseph, Automation and Unemployment: Help is on the Way (June 2018). CEPR Discussion Paper No. DP12974, Available at SSRN: https://ssrn.com/abstract=3193936

Hideki Nakamura (Contact Author)

Osaka City University ( email )

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

Joseph Zeira

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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