Seth G. Benzell, Victor Yifan Ye, 12 October 2021

Despite clear economic benefits of new digital technologies, slow median wage growth has led many to worry that these new technologies are failing to deliver for the average worker. This column develops a new model of global automation and technological change to study the long-term consequences of these trends. It finds that automation can boost output and growth, but these benefits are not equally distributed across or within regions. Nevertheless, in developed countries smart fiscal policy, such as universal basic income, can make new technologies a win-win for all age and skill groups. 

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