Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185445 
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7247
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
A fast-growing literature shows that digital technologies are displacing labor from routine tasks, raising concerns that labor is racing against the machine. We develop a task-based framework to estimate the aggregate labor demand and employment effects of routine-replacing technological change (RRTC), along with the underlying mechanisms. We show that while RRTC has indeed had strong displacement effects in the European Union between 1999 and 2010, it has simultaneously created new jobs through increased product demand, outweighing displacement effects and resulting in net employment growth. However, we also show that this finding depends on the distribution of gains from technological progress.
Subjects: 
labor demand
employment
routine-replacing technological change
tasks
local demand spillovers
JEL: 
E24
J23
J24
O33
Document Type: 
Working Paper
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