Hideki Nakamura, Joseph Zeira, 11 December 2018

The fear that technological innovation will increase unemployment is not new, and various theories in response suggest technology does not necessarily pose a threat to jobs. This column goes one step further, arguing that because automation requires rising wages and that requires increasing the set of labour tasks, innovation should ultimately reduce unemployment.

Simeon Djankov, Federica Saliola, 23 November 2018

Over the last century, technology has created more jobs than it has displaced. This column presents an overview of ways in which technology and innovation are changing the nature of work, leading to demand for advanced cognitive skills and greater adaptability among workers. The rise of platform marketplaces is also changing the way people work and the terms on which they work, which requires a rethinking of social protection systems.

Mitali Das, 13 November 2018

Evidence that routinisation lies behind labour market polarisation has been documented for many developed economies, but less is known about its impact in emerging markets. This column draws on national censuses and labour surveys for 160 countries between 1960 and 2015 to argue that although large-scale labour market dislocation is not imminent, emerging markets are becoming increasingly exposed to routinisation – and thus labour market polarisation – from the long-term effects of structural transformation and the onshoring of routine-intensive jobs.

Sangmin Aum, Tim Lee, Yongseok Shin, 04 July 2018

The past three decades have seen unprecedented technological development, with major impacts on labour markets and the economy as a whole. This column investigates how automation and the increased use of computers has affected productivity trends over the last three decades. Results suggest that automation has had a strong effect on slowing down aggregate productivity, despite raising it at the micro level. This is due to the reallocation of factor inputs across occupations and industries. 

Mai Dao, Mitali Das, Zsoka Koczan, Weicheng Lian, 08 September 2017

In both developing and advanced economies, labour’s share of income has been declining since the 1970s, presenting a puzzle for classical trade theory. This column proposes that the globalisation of trade and ‘routinisation’ of tasks can reconcile declining labour shares in both advanced and developing economies. Countries with higher initial exposure to routinisation and a greater increase in participation in global value chains are shown to have experienced stronger declines in the labour income share of medium-skilled workers.

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