Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution

Jeong, Deokjae and Baek, Seungjin (2023): Automation, Human Task Innovation, and Labor Share: Unveiling the Role of Elasticity of Substitution.

Abstract

This study examines the global decline in labor share since the 2005, focusing on the impacts of robotic and human innovation within a general equilibrium framework. Using novel shift-share variables ---operational robot data, patent similarity to automation vocabularies, and cognitive task intensity scores--- the research addresses endogeneity issues across countries and sectors. Findings reveal that while human innovation positively impacts labor share, robotic innovation exerts a predominantly negative influence, largely offsetting human innovation's effects.

• Item Type: MPRA Paper
• 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

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