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Are Workers Losing to Robots?

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Listed:
  • Sylvain Leduc
  • Zheng Liu

Abstract

The portion of national income that goes to workers, known as the labor share, has fallen substantially over the past 20 years. Even with strong employment growth in recent years, the labor share has remained at historically low levels. Automation has been an important driving factor. While it has increased labor productivity, the threat of automation has also weakened workers? bargaining power in wage negotiations and led to stagnant wage growth. Analysis suggests that automation contributed substantially to the decline in the labor share.

Suggested Citation

  • Sylvain Leduc & Zheng Liu, 2019. "Are Workers Losing to Robots?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfel:00205
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    Cited by:

    1. Yasuyuki Todo & Hiroyasu Inoue, 2021. "Geographic Diversification of the Supply Chains of Japanese Firms," Asian Economic Policy Review, Japan Center for Economic Research, vol. 16(2), pages 304-322, July.

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