Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/168027 
Year of Publication: 
2017
Series/Report no.: 
ECON WPS No. 06/2017
Publisher: 
Vienna University of Technology, Institute of Statistics and Mathematical Methods in Economics, Research Group Economics, Vienna
Abstract: 
We analyze the effects of automation on the wages of high-skilled and low-skilled workers and thereby on the evolution of wage inequality. Our model explains the simultaneous presence of i) increasing per capita income, ii) declining real wages of low-skilled workers, and iii) an increasing skill-premium. These developments are consistent with the experience in the United States over the past decades.
Subjects: 
automation
declining wages of low-skilled workers
wage inequality
skill premium
long-run growth
JEL: 
O11
O41
I24
Document Type: 
Working Paper

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