Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162808
Authors: 
Lastra-Anadón, Carlos
Muñiz, Manuel Antonio
Year of Publication: 
2017
Series/Report no.: 
Economics Discussion Papers 2017-43
Abstract: 
We are witnessing the start of a deep and prolonged political convulsion. This convulsion is caused by the impact of technological change on how wealth is generated and distributed in our societies. Since the 1970s advanced economies have seen a strong productivity increase and stagnant labor income. We believe this should be described as a major breach of our social contract. It is leading to the stagnation of income of the Middle Class, growing inequality and, ultimately, a radicalization of our politics. Unless the cause of this is properly diagnosed and the underlying drivers addressed head on we are bound to see a worsening of the convulsion. Here the paper analyzes technological change, its key cause and propose a series of bold experiments that countries should undertake in order to develop a new social contract with its citizens. The risk of doing nothing involves a long period of uncertainty and convulsion as well as the likelihood that little is achieved in tackling the underlying problems.
Subjects: 
automation
workforce polarization
basic income
public venture capital
vocational education
JEL: 
J24
J31
D72
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

Files in This Item:
File
Size
239.67 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.