IMF Working Papers

Technology and the Future of Work

By Adrian Peralta Alva, Agustin Roitman

September 28, 2018

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Adrian Peralta Alva, and Agustin Roitman. Technology and the Future of Work, (USA: International Monetary Fund, 2018) accessed November 21, 2024

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Summary

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.

Subject: Economic sectors, Financial crises, Income, Labor, Labor force, Labor share, National accounts, Unskilled labor

Keywords: Drivers of labor income share, GDP gain, Global, Income, Income distribution, Income gain, Income polarization, Increase in capital-labor substitutability, Labor force, Labor markets, Labor share, Market income, Middle-skilled workers, Office job, Price drop, Productivity gain, Routine office job, Routine task intensity index, Technology, Unskilled labor

Publication Details

  • Pages:

    28

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2018/207

  • Stock No:

    WPIEA2018207

  • ISBN:

    9781484374979

  • ISSN:

    1018-5941