Abstract

Recent decades have been characterized by a vast increase in computing power, reducing the cost of automating so-called routine tasks that follow precise rules and can thus be incorporated into computer code. This has led to a polarisation of labor markets in advanced economies, with a reduction in the proportion of middle-paid, routine intensive occupations, and an increase in the proportion of both high and low-paid jobs. Although this computerization has not led to a reduction in employment, whether this will be true of the consequences of further technological progress in the near future remains open. While previous automation methods were limited to tasks that are well enough understood to include defined steps in algorithms, now even less structured problems seem to be automated using big data and machine learning. The constant increase in computing power, the growing availability of big data, and significant advances in machine learning methods are shifting the boundaries of what can be automated by machines. Thus, some studies predict that about half of the US workforce is "at risk of automation," which has raised public concerns about mass unemployment caused by technology. The organization of production and labor on a scientific basis requires conducting production progress at a high technical and economic level, to bring to a new, higher level of organization, rationing, and remuneration. The study of labor economics is aimed at understanding the relationship between employees and employers. This is important for society because it determines wages, the causes of discrimination, the impact of migration on employment, and how governments should manage recessions. Digitalization is fundamentally changing the economy and our society. This encourages entrepreneurial innova-tion, productivity, and regional economic growth. It also matters for growth, the labor market, and political partici-pation. And this produces new demands on education and training – not only in the field of information and communication technologies. In the future, the main interest will be the question of how quickly digitalization is penetrating the German and European industry (industry 4.0) and how it changes productivity, employment, and competitiveness in various companies and sectors. Especially in terms of the economics of education, the ability of people to adapt to the changing world of work through education and training is fundamental.

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