A new version of this entry is available:
Loading...
ResearchPaper
2018
Technological unemployment revisited : automation in a searchand matching framework
Technological unemployment revisited : automation in a searchand matching framework
Abstract (English)
Will low-skilled workers be replaced by automation? To answer this question, we set up a search and matching model that features two skill types of workers and includes automation capital as an additional production factor. Automation capital is a perfect substitute for low-skilled workers and an imperfect substitute for high-skilled workers. Using this type of model, we show that the accumulation of automation capital decreases the labor market tightness in the low-skilled labor market and increases the labor market tightness in the high-skilled labor market. This leads to a rising unemployment rate of low-skilled workers and a falling un- employment rate of high-skilled workers. In addition, automation leads to falling wages of low-skilled workers and rising wages of high-skilled workers.
File is subject to an embargo until
This is a new version of:
Notes
Publication license
Publication series
Hohenheim discussion papers in business, economics and social sciences; 2018,19
Published in
Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institute of Economics
Examination date
Supervisor
Edition / version
Citation
Identification
DOI
ISSN
ISBN
Language
English
Publisher
Publisher place
Classification (DDC)
330 Economics