Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/191075 
Authors: 
Year of Publication: 
2018
Citation: 
[Journal:] Wirtschaftsdienst [ISSN:] 1613-978X [Volume:] 98 [Issue:] Sonderheft [Publisher:] Springer [Place:] Heidelberg [Year:] 2018 [Pages:] 46-49
Publisher: 
Springer, Heidelberg
Abstract: 
It is often argued that robots will lead to the reshoring of activity from low wage countries to rich countries - the revival of manufacturing in rich countries. But smart robots are a capital biased technology which could potentially replace smart people. As a result the skill premium - the relative wage between a university graduate and a high school graduate - is declining in Europe. The expansion of higher education has been too aggressive in face of the capital bias of digital technology.
Abstract (Translated): 
This essay examines whether robots will lead to the reshoring of activity from low-wage countries to rich countries, leading to a revival of manufacturing in rich countries. I argue that reshoring will not lead to an employment boom in rich countries, because the brilliant robots are a capital-biased technology, and as such, they potentially replace smart people. As a result, the skill premium - the wage discrepancy between a university graduate and a high school graduate - is declining in Europe. I argue further that the expansion of higher education has been too aggressive in light of the capital bias of digital technology.
JEL: 
F1
O3
D23
Persistent Identifier of the first edition: 
Document Type: 
Article

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