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Mechanization, Automation and the Labor Market

In: Accelerating Economic Growth

Author

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  • Jakub Growiec

    (SGH Warsaw School of Economics)

Abstract

What is the future of human work? Will robots take all our jobs? The hardware–software framework organizes the past evidence on long-run employment trends and offers interesting predictions for the future. The key dichotomy present in the framework underscores that very different implications should be expected whether machines replace human brawn (hardware) or brains (software), i.e., whether we are discussing mechanization of physical tasks or automation of cognitive tasks. Given that modern production processes are highly complex, it is also important whether automation is partial or full. Under partial automation, essential non-automated cognitive tasks are becoming scarce, boosting employment and wages in jobs that perform these tasks. Under full automation, in contrast, human cognitive work becomes substitutable with machines. Automation may gradually enter into all job categories, including also the jobs in research and development, potentially causing technological unemployment and increasing income inequality, while also potentially accelerating technological progress and economic growth.

Suggested Citation

  • Jakub Growiec, 2022. "Mechanization, Automation and the Labor Market," Frontiers in Economic History, in: Accelerating Economic Growth, chapter 0, pages 63-76, Springer.
    • Handle: RePEc:spr:frochp:978-3-031-07195-9_5
    DOI: 10.1007/978-3-031-07195-9_5
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