Trending

Stories

Automation Contributed to Income Inequality in the U.S. Study Reveals

Tidio Live Chat Software - Add Tidio live chat software to your website in minutes. Contact visitors and turn them into happy customers. Enhance their experience and boost your sales. Get it for Free

WP Rocket - WordPress Caching Plugin

Must Read

Yusuf Balogun
Yusuf Balogun
Yusuf is an aspiring Journalist and Health law expert with a special focus on technology innovations. He is a writer at Right for Education, Libertist Centre for Education, Qwenu, and Editor at Gamji Press, UDUS.

Over the years, reports have proven that automation is responsible for more than half of the major growth in the wage gap between individuals with more education and those with less education. However, a recent research study has quantified the amount to which automation has increased income inequality in the U.S. by merely substituting technology for labor, whether it be self-checkout machines, call-center systems, assembly-line equipment, or other devices.

In the research work titled: “Tasks, Automation, and the Rise in U.S. Wage Inequality,” Daron Acemoglu, the co-author, also an Institute Professor at MIT, and Pascual Restrepo Ph.D. ’16, an assistant professor of economics at Boston University said, “If you introduce self-checkout kiosks, it’s not going to change productivity all that much.” 

Also Read

However, the MIT economist further pointed out that in terms of lost wages for employees, “It’s going to have fairly large distributional effects, especially for low-skill service workers. It’s a labor-shifting device rather than a productivity-increasing device.” 

How Automation Contributed to Income Inequality in the U.S.

Acemoglu and Restrepo examined data on mechanical and software developments as well as figures from the U.S. Bureau of Economic Analysis on the usage of human labor in 49 industries between 1987 and 2016. Additionally, the researchers examined information they had previously gathered regarding using robots in the US from 1993 to 2014.

Elegant Themes - The most popular WordPress theme in the world and the ultimate WordPress Page Builder. Get a 30-day money-back guarantee. Get it for Free

In earlier research, Acemoglu and Restrepo discovered that robots alone had replaced a sizable number of humans in the United States, helped some companies dominate their industries, and increased inequality.

Acemoglu and Restrepo conclude that there have been significant repercussions. For instance, they estimate that since 1980, automation has, when adjusted for inflation, cut the salaries of males without a high school diploma by 8.8 percent and women without a high school diploma by 2.3 percent.

The idea that automation should be seen differently from other forms of innovation, with its unique implications in workplaces, and not just as a component of a larger trend toward the use of technology in everyday life generally, is a crucial one, according to Acemoglu.

“Technological change that creates or increases industry productivity, or productivity of one type of labour, creates [those] large productivity gains but does not have huge distributional effects,” Acemoglu says. “In contrast, automation creates very large distributional effects and may not have big productivity effects.”

Identifying A New Elegant Theoretical Framework

Moreover, several institutional issues, such as the negotiating power of labor, frequently affect the rate of automation. Therefore, according to labor economists, the study adds significantly to the body of knowledge on automation, work, and inequality and should be taken into consideration in discussions of these topics in the future.

“Acemoglu and Restrepo’s paper proposes an elegant new theoretical framework for understanding the potentially complex effects of technical change on the aggregate structure of wages,” says Patrick Kline, a professor of economics at the University of California, Berkeley.

“Their empirical finding that automation has been the dominant factor driving U.S. wage dispersion since 1980 is intriguing and seems certain to reignite debate over the relative roles of technical change and labour market institutions in generating wage inequality.”

In all, Acemoglu and Restrepo mention numerous study directions in the text. This entails examining how business and labor have reacted throughout time to the rise in automation, as well as the quantitative effects of technologies that do generate jobs and the industry rivalry between businesses that embraced automation swiftly and those that did not.

iThemes WordPress Hosting

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.

Latest

Stories

- Advertisement -
- Advertisement -

Latest

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.

- Advertisement -

Grow Your Business

Get these business solutions, tools and services to help your business grow.
Elementor

Elementor -Join 5,000,000+ Professionals Who Build Better Sites With Elementor. Build your website with 100% visual design that loads faster and speeds up the process of building them.

WP Rocket

WP Rocket - Speed up your website with the most powerful caching plugin in the world. The website speed increase means better SEO ranking, user experience, and conversation. It’s a fact that Google loves a fast site.

Kinsta

Kinsta - If you are looking for WordPress managed hosting, Kinsta is in the leading front. Kinsta provides WordPress hosting for a small or large business that helps take care of all your needs regarding your website with cutting-edge technology.

OptinMonster

OptinMonster - Instantly boost leads and grow revenue with the #1 most powerful conversion optimization toolkit in the world. 700,000+ websites are using OptinMonster to turn their traffic into leads, subscribers, and sales.

Related

- Advertisement -
- Advertisement -
OnePlus First-ever Tablet Launching in India Today ChatGPT Reaches 100 Million Users in Two Months Microsoft’s Teams Get OpenAI-Based Features WhatsApp New Feature that Allows Users to Create Calling Shortcuts Instagram Working On Twitter-like Paid Verification Feature OnePlus Ace 2 Specs Exposed Online Realme GT Neo 5 Full Specs Revealed  Samsung Galaxy S23 Ultra: The New Android King Twitter To End Free API February 9 MLS Season Pass Now Available On Apple TV App
Tesla To Increase Giga Shanghai EV Production to 20,000 Weekly  OpenAI Releases Tool To Detect AI-generated Text Tesla Records Double Net Profit in 2022 India to Produce Upcoming iPhones: Trade Minister Japanese Professor Developed A Power Semiconductor made of Diamond Google Releases New Product for India’s Merchants Indian EV Startup Unveil Two AutoBalancing Electric Scooters OPPO Find X6 Pro Images Render via Weibo