On the Welfare Implications of Automation
This paper establishes that the rise in the income share of information and communication technology accounts for half of the decline in labor income share in the United States. This decline can be decomposed into a sharp decline in the income shar...
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World Bank, Washington, DC
2015
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Online Access: | http://documents.worldbank.org/curated/en/2015/11/25380579/welfare-implications-automation http://hdl.handle.net/10986/23453 |
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okr-10986-234532021-04-23T14:04:15Z On the Welfare Implications of Automation Eden, Maya Gaggl, Paul SELF EMPLOYED GROWTH RATES EMPLOYMENT SOCIAL COSTS CONSUMPTION EXPENDITURES CAPITAL MARKETS CONSUMER DURABLES ECONOMIC GROWTH ACCOUNTING PRODUCTION COMMUNICATION TECHNOLOGIES CAPITAL ACCUMULATION STOCK INFORMATION TECHNOLOGY INCOME DEPRECIATION SERVICE OCCUPATIONS LABOR ALLOCATION EXCHANGE INFORMATION EXPORTS ELASTICITY ASSET MARGINAL PRODUCT NET CAPITAL DISTRIBUTION OF INCOME WELFARE OPTIMIZATION EFFECTS LABOR ECONOMICS DISTRIBUTION EQUILIBRIUM VARIABLES CAPITAL STOCK PRICE TAX INPUTS REAL WAGES RETURNS TO SCALE NOMINAL CAPITAL PAYMENTS WEALTH COMPUTER SYSTEMS RENTS ECONOMIC ANALYSIS TRENDS DRIVERS COMMUNICATIONS LABOR MARKET CAPITAL INTENSITY MARGINAL PRODUCTS INVESTMENT BEHAVIOR PRODUCTION STRUCTURE COSTS LABOR ALLOCATIONS DEVELOPMENT ECONOMICS EXTENSIVE CAPITAL GAINS CONSTANT RETURNS TO SCALE BASE YEAR PRODUCTIVITY BARRIERS TO ENTRY MARKETS NET EXPORTS ORGANIZATIONS ACCUMULATION LABOR ELASTICITY OF SUBSTITUTION CAPITAL STOCKS UTILITY INVENTORY GAINS REAL ESTATE ECONOMIC RESEARCH UNEMPLOYMENT BLUE COLLAR OCCUPATIONS INVESTORS PRODUCTIVITY GROWTH DATA AVAILABILITY CONSUMPTION FACTOR MARKETS GENERAL EQUILIBRIUM TECHNOLOGICAL CHANGE VALUE ADDED TAX INCENTIVE AGGREGATE SUPPLY CAPITAL WAGES INTERNATIONAL TRADE BARRIERS FUTURE VALUE PENSIONS COMPETITIVENESS MACROECONOMICS OCCUPATIONS EXPENDITURES INCOMES SHARE OF CAPITAL MEASUREMENT SHARES AFFILIATED ORGANIZATIONS ASSETS BENCHMARK PRODUCTION FUNCTION ECONOMICS ENDOGENOUS VARIABLES SECRETARIES OUTPUT MANAGEMENT FUNCTIONAL FORMS TRADE INVESTMENT RATES GDP GOODS INVESTOR THEORY INTANGIBLE GROWTH RATE INVESTMENT MACROECONOMIC ANALYSIS SHARE SUPPLY AFFILIATED OPTIMAL ALLOCATION SHARE CAPITAL LABOR SUPPLY TAX POLICY RETURN ON INVESTMENT COMMUNICATION DEMOGRAPHIC ARBITRAGE COMMUNICATION TECHNOLOGY LABOR MARKETS SAFETY ADVERSE EFFECTS PRICES DEVELOPMENT POLICY This paper establishes that the rise in the income share of information and communication technology accounts for half of the decline in labor income share in the United States. This decline can be decomposed into a sharp decline in the income share of “routine” labor—which is relatively more prone to automation—and a milder rise in the non-routine share. Quantitatively, this decomposition suggests large effects of information and communication technology on the income distribution within labor, but only moderate effects on the distribution of income between capital and labor. A production structure calibrated to match these trends suggests modest aggregate welfare gains from automation. 2015-12-18T20:21:29Z 2015-12-18T20:21:29Z 2015-11 Working Paper http://documents.worldbank.org/curated/en/2015/11/25380579/welfare-implications-automation http://hdl.handle.net/10986/23453 English en_US Policy Research Working Paper;No. 7487 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English en_US |
topic |
SELF EMPLOYED GROWTH RATES EMPLOYMENT SOCIAL COSTS CONSUMPTION EXPENDITURES CAPITAL MARKETS CONSUMER DURABLES ECONOMIC GROWTH ACCOUNTING PRODUCTION COMMUNICATION TECHNOLOGIES CAPITAL ACCUMULATION STOCK INFORMATION TECHNOLOGY INCOME DEPRECIATION SERVICE OCCUPATIONS LABOR ALLOCATION EXCHANGE INFORMATION EXPORTS ELASTICITY ASSET MARGINAL PRODUCT NET CAPITAL DISTRIBUTION OF INCOME WELFARE OPTIMIZATION EFFECTS LABOR ECONOMICS DISTRIBUTION EQUILIBRIUM VARIABLES CAPITAL STOCK PRICE TAX INPUTS REAL WAGES RETURNS TO SCALE NOMINAL CAPITAL PAYMENTS WEALTH COMPUTER SYSTEMS RENTS ECONOMIC ANALYSIS TRENDS DRIVERS COMMUNICATIONS LABOR MARKET CAPITAL INTENSITY MARGINAL PRODUCTS INVESTMENT BEHAVIOR PRODUCTION STRUCTURE COSTS LABOR ALLOCATIONS DEVELOPMENT ECONOMICS EXTENSIVE CAPITAL GAINS CONSTANT RETURNS TO SCALE BASE YEAR PRODUCTIVITY BARRIERS TO ENTRY MARKETS NET EXPORTS ORGANIZATIONS ACCUMULATION LABOR ELASTICITY OF SUBSTITUTION CAPITAL STOCKS UTILITY INVENTORY GAINS REAL ESTATE ECONOMIC RESEARCH UNEMPLOYMENT BLUE COLLAR OCCUPATIONS INVESTORS PRODUCTIVITY GROWTH DATA AVAILABILITY CONSUMPTION FACTOR MARKETS GENERAL EQUILIBRIUM TECHNOLOGICAL CHANGE VALUE ADDED TAX INCENTIVE AGGREGATE SUPPLY CAPITAL WAGES INTERNATIONAL TRADE BARRIERS FUTURE VALUE PENSIONS COMPETITIVENESS MACROECONOMICS OCCUPATIONS EXPENDITURES INCOMES SHARE OF CAPITAL MEASUREMENT SHARES AFFILIATED ORGANIZATIONS ASSETS BENCHMARK PRODUCTION FUNCTION ECONOMICS ENDOGENOUS VARIABLES SECRETARIES OUTPUT MANAGEMENT FUNCTIONAL FORMS TRADE INVESTMENT RATES GDP GOODS INVESTOR THEORY INTANGIBLE GROWTH RATE INVESTMENT MACROECONOMIC ANALYSIS SHARE SUPPLY AFFILIATED OPTIMAL ALLOCATION SHARE CAPITAL LABOR SUPPLY TAX POLICY RETURN ON INVESTMENT COMMUNICATION DEMOGRAPHIC ARBITRAGE COMMUNICATION TECHNOLOGY LABOR MARKETS SAFETY ADVERSE EFFECTS PRICES DEVELOPMENT POLICY |
spellingShingle |
SELF EMPLOYED GROWTH RATES EMPLOYMENT SOCIAL COSTS CONSUMPTION EXPENDITURES CAPITAL MARKETS CONSUMER DURABLES ECONOMIC GROWTH ACCOUNTING PRODUCTION COMMUNICATION TECHNOLOGIES CAPITAL ACCUMULATION STOCK INFORMATION TECHNOLOGY INCOME DEPRECIATION SERVICE OCCUPATIONS LABOR ALLOCATION EXCHANGE INFORMATION EXPORTS ELASTICITY ASSET MARGINAL PRODUCT NET CAPITAL DISTRIBUTION OF INCOME WELFARE OPTIMIZATION EFFECTS LABOR ECONOMICS DISTRIBUTION EQUILIBRIUM VARIABLES CAPITAL STOCK PRICE TAX INPUTS REAL WAGES RETURNS TO SCALE NOMINAL CAPITAL PAYMENTS WEALTH COMPUTER SYSTEMS RENTS ECONOMIC ANALYSIS TRENDS DRIVERS COMMUNICATIONS LABOR MARKET CAPITAL INTENSITY MARGINAL PRODUCTS INVESTMENT BEHAVIOR PRODUCTION STRUCTURE COSTS LABOR ALLOCATIONS DEVELOPMENT ECONOMICS EXTENSIVE CAPITAL GAINS CONSTANT RETURNS TO SCALE BASE YEAR PRODUCTIVITY BARRIERS TO ENTRY MARKETS NET EXPORTS ORGANIZATIONS ACCUMULATION LABOR ELASTICITY OF SUBSTITUTION CAPITAL STOCKS UTILITY INVENTORY GAINS REAL ESTATE ECONOMIC RESEARCH UNEMPLOYMENT BLUE COLLAR OCCUPATIONS INVESTORS PRODUCTIVITY GROWTH DATA AVAILABILITY CONSUMPTION FACTOR MARKETS GENERAL EQUILIBRIUM TECHNOLOGICAL CHANGE VALUE ADDED TAX INCENTIVE AGGREGATE SUPPLY CAPITAL WAGES INTERNATIONAL TRADE BARRIERS FUTURE VALUE PENSIONS COMPETITIVENESS MACROECONOMICS OCCUPATIONS EXPENDITURES INCOMES SHARE OF CAPITAL MEASUREMENT SHARES AFFILIATED ORGANIZATIONS ASSETS BENCHMARK PRODUCTION FUNCTION ECONOMICS ENDOGENOUS VARIABLES SECRETARIES OUTPUT MANAGEMENT FUNCTIONAL FORMS TRADE INVESTMENT RATES GDP GOODS INVESTOR THEORY INTANGIBLE GROWTH RATE INVESTMENT MACROECONOMIC ANALYSIS SHARE SUPPLY AFFILIATED OPTIMAL ALLOCATION SHARE CAPITAL LABOR SUPPLY TAX POLICY RETURN ON INVESTMENT COMMUNICATION DEMOGRAPHIC ARBITRAGE COMMUNICATION TECHNOLOGY LABOR MARKETS SAFETY ADVERSE EFFECTS PRICES DEVELOPMENT POLICY Eden, Maya Gaggl, Paul On the Welfare Implications of Automation |
relation |
Policy Research Working Paper;No. 7487 |
description |
This paper establishes that the rise in
the income share of information and communication technology
accounts for half of the decline in labor income share in
the United States. This decline can be decomposed into a
sharp decline in the income share of “routine” labor—which
is relatively more prone to automation—and a milder rise in
the non-routine share. Quantitatively, this decomposition
suggests large effects of information and communication
technology on the income distribution within labor, but only
moderate effects on the distribution of income between
capital and labor. A production structure calibrated to
match these trends suggests modest aggregate welfare gains
from automation. |
format |
Working Paper |
author |
Eden, Maya Gaggl, Paul |
author_facet |
Eden, Maya Gaggl, Paul |
author_sort |
Eden, Maya |
title |
On the Welfare Implications of Automation |
title_short |
On the Welfare Implications of Automation |
title_full |
On the Welfare Implications of Automation |
title_fullStr |
On the Welfare Implications of Automation |
title_full_unstemmed |
On the Welfare Implications of Automation |
title_sort |
on the welfare implications of automation |
publisher |
World Bank, Washington, DC |
publishDate |
2015 |
url |
http://documents.worldbank.org/curated/en/2015/11/25380579/welfare-implications-automation http://hdl.handle.net/10986/23453 |
_version_ |
1764453883641331712 |