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The Role of Education in Mitigating Automation's Effect on Wage Inequality.
- Source :
- LABOUR: Review of Labour Economics & Industrial Relations; Mar2021, Vol. 35 Issue 1, p79-104, 26p
- Publication Year :
- 2021
-
Abstract
- While automation has renewed the debate about labor market policy responses to inequality and job losses, less attention has been given to education policy. We present a general equilibrium model and empirical evidence showing how education mitigates wage inequality resulting from a recent, worst‐case expectation of technology's ability to automate job tasks. Our model predicts that education could reduce automation's marginal effect on the wage gap between lower‐ and higher‐skilled labor by up to 3 percentage points. Education policies that promote automation‐complementing skill formation would reduce the need for costly labor market and wealth redistribution interventions later in life. [ABSTRACT FROM AUTHOR]
- Subjects :
- INCOME inequality
EMPLOYMENT policy
AUTOMATION
LABOR market
EDUCATION policy
Subjects
Details
- Language :
- English
- ISSN :
- 11217081
- Volume :
- 35
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- LABOUR: Review of Labour Economics & Industrial Relations
- Publication Type :
- Academic Journal
- Accession number :
- 148477535
- Full Text :
- https://doi.org/10.1111/labr.12187