Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/155785
Authors: 
Prettner, Klaus
Strulik, Holger
Year of Publication: 
2017
Series/Report no.: 
Hohenheim Discussion Papers in Business, Economics and Social Sciences 08-2017
Abstract: 
We analyze the effect of automation on economic growth and inequality in an R&D-based growth model with two types of labor: highskilled labor that is complementary to machines and low-skilled labor that is a substitute for machines. The model predicts that innovationdriven growth leads to increasing automation, an increasing skill premium, an increasing population share of graduates, increasing income and wealth inequality, a declining labor share, and (in an extension of the basic model) increasing unemployment. In contrast to Piketty's famous claim that faster economic growth reduces inequality, our theory predicts that faster economic growth promotes inequality.
Subjects: 
Automation
R&D-Based Growth
Inequality
Wealth Concentration
JEL: 
E23
E25
O31
O33
O40
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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