Automation and Welfare: The Role of Bequests and Education
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Summary:
This paper examines the welfare effects of automation in neoclassical growth models with and without intergenerational transfers. In a standard overlapping generations model without such transfers, improvements in automation technologies that would lower welfare can be mitigated by shifts in labor supply related to demographics or pandemics. With perfect intergenerational transfers based on altruism, automation could raise the well-being of all generations. With imperfect altruism, fiscal transfers (universal basic income) and public policies to expand access to education opportunities can alleviate much of the negative effect of automation.
Series:
Working Paper No. 2024/011
Subject:
Automation Consumption Education Human capital Income Labor National accounts Technology
Frequency:
regular
English
Publication Date:
January 12, 2024
ISBN/ISSN:
9798400263026/1018-5941
Stock No:
WPIEA2024011
Format:
Paper
Pages:
41
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