Abstract
Our study analyzes the advantages that automation presents for the job. The main new feature of our framework is that, in addition to the part of jobs that are displaced by automation, it also leads to the creation of new, more complex versions of existing tasks, which leads to the demand for employment. We focused more on the essential factor which is the degree of skill to take advantage of these new jobs. We carry out research based on information relating to automation and jobs. Also, by using the output of the final good model, we show that the creation of new tasks in which the labor has a comparative advantage is one of the positive aspects of automation. We find that automation will create new jobs (smart jobs) and eliminates repetitive jobs which will be replaced by machines in the future. However, these new jobs will need high skills. Therefore, the level and quality of education will play important role in the new jobs that automation will generate. Workers and future students must prepare themselves by focusing their training more on the skills that new technologies will require. Automation may prepare us for a future in which workers with low skills will be forced to change occupations or lose their occupations, which will be completely occupied by machines. We find also that the job loss depends on the speed of automation in each country. Based on the economic structure, the investment policy in new technology, and the level of education of countries, the speed at which automation spread is slower in some countries and intense in others. Therefore, the job is more at risk in countries with high automation than in those with medium or low automation.
Highlights
An intense debate has intensified for years around the question of the future of work with the advent of machines
The main new feature of our framework is that, in addition to the part of jobs that are displaced by automation, it leads to the creation of new, more complex versions of existing tasks, which leads to the demand for employment
We focused more on the essential factor which is the degree of skill to take advantage of these new jobs
Summary
An intense debate has intensified for years around the question of the future of work with the advent of machines. This displacement effect can be counterbalanced by other economic factors like productivity, capital accumulation, the deepening of automation, and the creation of new tasks Those factors lead to an increase in labor demand. Acemoglu and Restrepo (2016) think that, in a static version where the capital is fixed and technology is exogenous, automation leads to a reduction in employment and the share of labor, but the creation of new tasks generated by this automation causes an increase of labor demand. Acemoglu and Restrepo (2017) and Chiacchio et al (2018) underline the fact that automation affect wages and employment in two ways: The direct displacement of workers from the tasks they previously performed creates displacement effect which negatively affects employment and the increase in demand for labor by industries which creates productivity effect which positively affects wages and employment.
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