Technology and the Future of Work

29 Pages Posted: 16 Oct 2018

See all articles by Adrian Peralta-Alva

Adrian Peralta-Alva

Federal Reserve Bank of St. Louis

Agustin Roitman

International Monetary Fund (IMF)

Date Written: September 2018


This paper uses a DSGE model to simulate the impact of technological change on labor markets and income distribution. It finds that technological advances offers prospects for stronger productivity and growth, but brings risks of increased income polarization. This calls for inclusive policies tailored to country-specific circumstances and preferences, such as investment in human capital to facilitate retooling of low-skilled workers so that they can partake in the gains of technological change, and redistributive policies (such as differentiated income tax cuts) to help reallocate gains. Policies are also needed to facilitate the process of adjustment.

Keywords: Unemployment, Employment, Technological innovation, Labor markets, Income distribution, Technology, Aggregate Factor Income Distribution, Forecasting and Simulation, General

JEL Classification: E24, E25, E37, E60

Suggested Citation

Peralta-Alva, Adrian and Roitman, Agustin, Technology and the Future of Work (September 2018). IMF Working Paper No. 18/207. Available at SSRN:

Adrian Peralta-Alva (Contact Author)

Federal Reserve Bank of St. Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States


Agustin Roitman

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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