Should We Fear the Robot Revolution? (The Correct Answer is Yes)
Author | : Mr.Andrew Berg |
Publisher | : International Monetary Fund |
Total Pages | : 61 |
Release | : 2018-05-21 |
ISBN-10 | : 9781484300831 |
ISBN-13 | : 1484300831 |
Rating | : 4/5 (31 Downloads) |
Book excerpt: We may be on the cusp of a “second industrial revolution” based on advances in artificial intelligence and robotics. We analyze the implications for inequality and output, using a model with two assumptions: “robot” capital is distinct from traditional capital in its degree of substitutability with human labor; and only capitalists and skilled workers save. We analyze a range of variants that reflect widely different views of how automation may transform the labor market. Our main results are surprisingly robust: automation is good for growth and bad for equality; in the benchmark model real wages fall in the short run and eventually rise, but “eventually” can easily take generations.