Presentation: The Living Wage EITC

Abstract

This presentation was prepared for a conference hosted by the NYU Center for Labor & Employment Law titled Artificial Intelligence and Automation: Impact on Work and Workers, on June 13, 2019. The animating concern addressed in the presentation is: what if the proliferation of robots and artificial intelligence does not mean that U.S. jobs disappear, but rather means that the jobs that remain for most humans are worse jobs – jobs that are lower paying, with no chance for advancement. This development in labor markets would put pressure on the sort of labor subsidies we already have in the U.S., but would not necessarily demand a new sort of arrangement to provide for basic needs (e.g., universal basic income). A more robust Earned Income Tax Credit, or EITC would offer a more targeted solution. The Living Wage EITC contemplated here would be a long-term, ongoing subsidy for a sort of job that may become more common: somewhat low paying and with no prospects for advancement. The Living Wage EITC could account for household characteristics and cost of living to ensure a wage that a person or family can survive and thrive on, not just barely get by on.