Abstract
Automation may affect job quality and labor supply, but these effects are not well appreciated. Conventionally, supermarket cashiers scan and collect payment. Collecting payment is cognitively demanding and risky. A semi-automated job design relieved cashiers of collecting payment and focused them on scanning. Empirically, the median cashier preferred the new design by 4.1 percent of monthly wages, and the job design increased local cashier labor supply by about 1 percent. These results support the proposition that automation which substitutes machines for humans in disliked tasks enables the redesign of jobs to raise job quality and increase labor supply.
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