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Technololgy and Labor Markets
Technololgy and Labor Markets
Automation can be used to improve efficiency, accuracy, and productivity in many industries,
such as manufacturing, transportation, and healthcare. Automation can also be used to perform
tasks that are too dangerous or difficult for humans to do, such as exploring deep space or
working in hazardous environments. Automation can be implemented in many forms, including
software, hardware, and a combination of both.
Example:
The use of industrial robots in manufacturing
The use of chatbots in customer service
The positive impact The negative impact
Increased productivity Job Losses
World Bank
1.8 billion jobs or roughly two-thirds of the labor force in
developing countries would be replaced by automation
in China
Simpson’s paradox
larger cities on the advantaged side (premium and elite)
have greater resilience to automation impacts while the
larger cities on the non-advantaged side are more
susceptible
small non-advantaged cities (non-premium and non-
elite) are resilient to automation impacts
The impacts
of automation
Chinese cities on the advantaged sides exhibit more
potent size effects than US cities