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Thursday, November 04, 2021

Impact of Covid on Automation

Wladowsky-Berger does a good job in covering the topic:

Impact of Covid-19 on Job Automation

“Why are there still so many jobs?,” asked MIT economist David Autor in a 2015 article on the history of workplace automation. Given that technologies have been automating human work for the past couple of centuries,“should we not be somewhat surprised that technological change hasn’t already wiped out employment for the vast majority of workers?”

As Autor explained in the article, the answer is based on an economic reality that’s frequently overlooked. “Automation does indeed substitute for labor - as it is typically intended to do. However, automation also complements labor, raises output in ways that lead to higher demand for labor, and interacts with adjustments in labor supply. … journalists and even expert commentators tend to overstate the extent of machine substitution for human labor and ignore the strong complementarities between automation and labor that increase productivity, raise earnings, and augment demand for labor.”   ...'

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