Full Citation

Title: Partial automation and the technology-enabled deskilling of routine jobs

Citation Type: Journal Article

Publication Year: 2021

ISBN:

ISSN: 09275371

DOI: 10.1016/j.labeco.2021.101973

NSFID:

PMCID:

PMID:

Abstract: Evidence shows technology automates middle-wage occupations’ routine tasks. I argue technology only partially automates these, simplifying them so that they can be performed by less-skilled workers. Thus, post-automation costs include technology and low-wage workers to use it. The minimum wage raises these costs, lowering the profitability of automation and slowing the adoption of routine-replacing technologies. I test this claim using new cross-state variation in the minimum wage (induced by state price differences) and new cross-industry variation in the importance of low-skilled labor for technology (measuring using the Current Population Survey Computer Use Supplement and the Dictionary of Occupational Titles). Because low-skilled workers are needed alongside technology, I show that a low minimum wage increases the automation of routine jobs.

Url: https://doi.org/10.1016/j.labeco.2021.101973

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Authors: Downey, Mitch

Periodical (Full): Labour Economics

Issue:

Volume: 69

Pages: 101973

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

Countries: