Jeong, Deokjae and Baek, Seungjin and Peri, Giovanni (2024): Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution.
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Abstract
This paper investigates the elements contributing to the change in labor share, with a specific focus on the roles of ‘automation’ and ‘innovation in human tasks.’ We construct a general equilibrium model that distinctly incorporates both robot and non-robot capital to derive an econometric specification. Using task data from O*NET and employing the most recently developed sentence embedding tools to match tasks and patents, we construct a novel ‘innovation in human tasks’ variable for multiple countries. This allows us to empirically evaluate the impact of innovation in human tasks on labor share across countries for the first time in the literature. Our accounting analysis suggests that the positive influence of human task innovation outweighs the adverse effects of automation in most of countries we study. From our regression analysis, we estimate the elasticity of substitution between labor and non-robot capital to be less than one, while the elasticity of substitution between tasks is greater than one. With these estimates, we elucidate the direct and indirect effects of automation and innovation in human tasks on labor share.
Item Type: | MPRA Paper |
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Original Title: | Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution |
English Title: | Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution |
Language: | English |
Keywords: | automation; tasks; labor share; robot; elasticity of substitution |
Subjects: | D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity D - Microeconomics > D3 - Distribution > D33 - Factor Income Distribution E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E24 - Employment ; Unemployment ; Wages ; Intergenerational Income Distribution ; Aggregate Human Capital ; Aggregate Labor Productivity E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E25 - Aggregate Factor Income Distribution J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J23 - Labor Demand O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries |
Item ID: | 121887 |
Depositing User: | Deokjae Jeong |
Date Deposited: | 06 Sep 2024 17:50 |
Last Modified: | 06 Sep 2024 17:50 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/121887 |
Available Versions of this Item
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Factors Influencing Labor Share: Automation, Task Innovation, and Elasticity of Substitution. (deposited 12 Oct 2023 08:29)
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Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 26 Oct 2023 04:56)
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Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 26 Nov 2023 15:27)
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Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 11 Dec 2023 13:22)
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Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 26 Aug 2024 23:20)
- Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 23 Sep 2024 15:11)
- Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 06 Sep 2024 17:50) [Currently Displayed]
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Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 26 Aug 2024 23:20)
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Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 11 Dec 2023 13:22)
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Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 26 Nov 2023 15:27)
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Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution. (deposited 26 Oct 2023 04:56)