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Does Automation Always Lead to a Decline in Low-Wage Jobs?

Author

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  • Daniel Aaronson
  • Brian J. Phelan

Abstract

To what extent are low-wage jobs in the United States being replaced by technology? Our research suggests that low-wage jobs that are intensive in routine cognitive tasks, such as cashier, were supplanted by automation during the 2000s. Moreover, since the Great Recession, jobs intensive in both routine manual and routine cognitive tasks have been negatively impacted by automation. Nevertheless, the overall effect on individual low-wage workers has been surprisingly small.

Suggested Citation

  • Daniel Aaronson & Brian J. Phelan, 2019. "Does Automation Always Lead to a Decline in Low-Wage Jobs?," Chicago Fed Letter, Federal Reserve Bank of Chicago.
    • Handle: RePEc:fip:fedhle:00102
    DOI: 10.21033/cfl-2019-413
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    Cited by:

    1. Daniel Aaronson & Brian J. Phelan, 2020. "The Evolution of Technological Substitution in Low-Wage Labor Markets," Working Paper Series WP-2020-16, Federal Reserve Bank of Chicago, revised 01 Mar 2022.
    2. Raja Bentaouet Kattan & Kevin Macdonald & Harry Anthony Patrinos, 2021. "The Role of Education in Mitigating Automation’s Effect on Wage Inequality," LABOUR, CEIS, vol. 35(1), pages 79-104, March.

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    Keywords

    wages; Employment;

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