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Robots and the skill premium: An automation-based explanation of wage inequality

Year: 2017

Type: preprint

Abstract: We analyze the effects of automation on the wages of high-skilled and low-skilled workers and thereby on the evolution of wage inequality. Our model explains the simultaneous presence of i) increasing per capita income, ii) declining real wages of low-skilled workers, and iii) an increasing skill-premium. These developments are consistent with the experience in the United States over the past decades.

Source: RePEc: Research Papers in Economics

Authors: Clemens Lankisch, Klaus Prettner, Alexia Prskawetz

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: green

Funder: Universität Hohenheim

OpenAlex ID: W2756688313

Cites: 17

Cited by: 12

Related to: 10