Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/169370 
Year of Publication: 
2017
Series/Report no.: 
Hohenheim Discussion Papers in Business, Economics and Social Sciences No. 29-2017
Publisher: 
Universität Hohenheim, Fakultät Wirtschafts- und Sozialwissenschaften, Stuttgart
Abstract: 
We analyze the effects of automation on the wages of high-skilled and low- skilled workers and thereby on the evolution of wage inequality. Our model explains the simultaneous presence of i) increasing per capita GDP, ii) de-clining real wages of low-skilled workers, and iii) an increasing skill-premium. These developments are consistent with the experience in the United States over the past decades and have the potential to contribute to the explanation of the rise in overall incomeinequality that we have observed since the 1980s.
Subjects: 
automation
declining real wages of low-skilled workers
income inequality
long-run economic growth
skill premium
JEL: 
O11
O41
I24
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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