Inequality and technical change Flashcards
(15 cards)
What is technological change?
The process of innovation and improvement of tools, systems, or processes over time.
What are examples of recent technological changes?
AI, 5G, self-driving cars, digital platforms.
What happened during the 1990s–2000s automation wave?
Computers automated clerical and manufacturing tasks; productivity gains concentrated in top firms.
What changed in the 2010s–2020s?
AI and machine learning automated cognitive tasks, reinforcing “winner-takes-all” dynamics.
What is job polarisation? (Autor, 2019)
Decline in middle-skill jobs, growth in high- and low-skill jobs.
How has urban wage inequality changed? (Autor, 2019)
High-skilled workers benefit most; middle-skill workers face stagnation; low-skill workers see little wage growth.
What is task displacement? (Acemoglu & Restrepo, 2018)
Automation replaces routine tasks, reducing demand for middle-skill jobs.
What is task creation? (Acemoglu & Restrepo, 2018)
New roles emerge for high-skill workers, increasing wage inequality.
What tasks do industrial robots perform?
Painting, welding, sorting, assembling.
How does robotisation differ from general automation?
It targets specific manual tasks in production.
Which countries lead in industrial robot use?
South Korea, Germany, Japan.
What are the two effects of robot adoption? (Acemoglu & Restrepo, 2020)
Displacement effect – job loss in automated tasks
Productivity effect – job growth in non-automated tasks
What are the firm-level effects of robot adoption? (Acemoglu & Restrepo, 2020)
15% output boost, 4% employment increase, 5 pp drop in labour share.
How is AI affecting the labour market?
It’s automating higher-wage, knowledge-based jobs.
What are key policy responses to AI-driven change?
Invest in skills and retraining
Encourage human-complementing innovation
Reform labour policies for displaced workers
