Automation and Labor Market Outcomes : The Pivotal Role of High-Quality Education

Automation will be a boon or a catastrophe depending on whom you listen to. This paper proposes an overlapping-generations model with endogenous school choice in which the quality of a country's education system determines how well skill suppl...

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Main Authors:	Bentaouet Kattan, Raja, Macdonald, Kevin, Patrinos, Harry Anthony
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	LABOR MARKET LABOR SKILLS TECHNOLOGY CHANGE AUTOMATION JOBS OVERLAPPING-GENERATIONS MODEL EDUCATION QUALITY EDUCATIONAL ATTAINMENT COGNITIVE SKILLS
Online Access:	http://documents.worldbank.org/curated/en/356581528983322638/Automation-and-labor-market-outcomes-the-pivotal-role-of-high-quality-education http://hdl.handle.net/10986/29903

id	okr-10986-29903
recordtype	oai_dc
spelling	okr-10986-299032021-06-08T14:42:46Z Automation and Labor Market Outcomes : The Pivotal Role of High-Quality Education Bentaouet Kattan, Raja Macdonald, Kevin Patrinos, Harry Anthony LABOR MARKET LABOR SKILLS TECHNOLOGY CHANGE AUTOMATION JOBS OVERLAPPING-GENERATIONS MODEL EDUCATION QUALITY EDUCATIONAL ATTAINMENT COGNITIVE SKILLS Automation will be a boon or a catastrophe depending on whom you listen to. This paper proposes an overlapping-generations model with endogenous school choice in which the quality of a country's education system determines how well skill supply can respond to increased demand from automation and subsequently whether automation will be beneficial or detrimental. In this sense, education quality in the model offers a bridge between the optimistic and pessimistic perspectives on automation. In testing the model's assumptions, the paper finds evidence that educational attainment, cognitive skills, and select noncognitive skills are associated with avoiding automation-prone occupations. Consistent with the model's predictions, census data indicate that countries have historically relied most on these types of occupations at middle-income status. The model and empirical findings suggest that it is middle-income countries that are most vulnerable to automation if their education systems are unable to affect cognitive and noncognitive skills sufficiently. As a result, automation may herald a much different growth model for developing countries: one in which developing these skills is central. 2018-06-19T15:57:47Z 2018-06-19T15:57:47Z 2018-06 Working Paper http://documents.worldbank.org/curated/en/356581528983322638/Automation-and-labor-market-outcomes-the-pivotal-role-of-high-quality-education http://hdl.handle.net/10986/29903 English Policy Research Working Paper;No. 8474 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	LABOR MARKET LABOR SKILLS TECHNOLOGY CHANGE AUTOMATION JOBS OVERLAPPING-GENERATIONS MODEL EDUCATION QUALITY EDUCATIONAL ATTAINMENT COGNITIVE SKILLS
spellingShingle	LABOR MARKET LABOR SKILLS TECHNOLOGY CHANGE AUTOMATION JOBS OVERLAPPING-GENERATIONS MODEL EDUCATION QUALITY EDUCATIONAL ATTAINMENT COGNITIVE SKILLS Bentaouet Kattan, Raja Macdonald, Kevin Patrinos, Harry Anthony Automation and Labor Market Outcomes : The Pivotal Role of High-Quality Education
relation	Policy Research Working Paper;No. 8474
description	Automation will be a boon or a catastrophe depending on whom you listen to. This paper proposes an overlapping-generations model with endogenous school choice in which the quality of a country's education system determines how well skill supply can respond to increased demand from automation and subsequently whether automation will be beneficial or detrimental. In this sense, education quality in the model offers a bridge between the optimistic and pessimistic perspectives on automation. In testing the model's assumptions, the paper finds evidence that educational attainment, cognitive skills, and select noncognitive skills are associated with avoiding automation-prone occupations. Consistent with the model's predictions, census data indicate that countries have historically relied most on these types of occupations at middle-income status. The model and empirical findings suggest that it is middle-income countries that are most vulnerable to automation if their education systems are unable to affect cognitive and noncognitive skills sufficiently. As a result, automation may herald a much different growth model for developing countries: one in which developing these skills is central.
format	Working Paper
author	Bentaouet Kattan, Raja Macdonald, Kevin Patrinos, Harry Anthony
author_facet	Bentaouet Kattan, Raja Macdonald, Kevin Patrinos, Harry Anthony
author_sort	Bentaouet Kattan, Raja
title	Automation and Labor Market Outcomes : The Pivotal Role of High-Quality Education
title_short	Automation and Labor Market Outcomes : The Pivotal Role of High-Quality Education
title_full	Automation and Labor Market Outcomes : The Pivotal Role of High-Quality Education
title_fullStr	Automation and Labor Market Outcomes : The Pivotal Role of High-Quality Education
title_full_unstemmed	Automation and Labor Market Outcomes : The Pivotal Role of High-Quality Education
title_sort	automation and labor market outcomes : the pivotal role of high-quality education
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/356581528983322638/Automation-and-labor-market-outcomes-the-pivotal-role-of-high-quality-education http://hdl.handle.net/10986/29903
_version_	1764470674550685696

Automation and Labor Market Outcomes : The Pivotal Role of High-Quality Education

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