{
  "title": "Should We Fear the Robot Revolution? (The Correct Answer is Yes)",
  "publication": "IMF Working Papers, May 21, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2018/05/21/should-we-fear-the-robot-revolution-the-correct-answer-is-yes-44923",
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  "summary": "We may be on the cusp of a “second industrial revolution” based on advances in artificial intelligence and robotics. We analyze the implications for inequality and output, using a model with two assumptions: “robot” capital is distinct from traditional capital in its degree of substitutability with",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Authors: Andrew Berg, Edward F Buffie, Luis-Felipe Zanna\n- Date: May 21, 2018\n- Series: Working Paper No. 2018/116\n- Pages: 61\n- DOI: https://doi.org/10.5089/9781484300831.001\n- Core summary: Advances in artificial intelligence and robotics may constitute a “second industrial revolution.” The paper analyzes implications for inequality and output using a model with two key assumptions: (1) “robot” capital is distinct from traditional capital in its degree of substitutability with human labor; and (2) only capitalists and skilled workers save. A range of model variants reflecting different views of automation’s labor-market effects is analyzed."
    },
    {
      "heading": "Model structure and assumptions",
      "content": "- Distinct capital types:\n  - “Robot” capital is modeled as distinct from traditional capital by its degree of substitutability with human labor.\n- Saving behavior:\n  - Only capitalists and skilled workers save.\n- Variants:\n  - The analysis includes a range of model variants to reflect widely different views of how automation may transform the labor market."
    },
    {
      "heading": "Main findings and analysis",
      "content": "- Core result:\n  - Automation is good for growth and bad for equality.\n- Real wage dynamics:\n  - In the benchmark model real wages fall in the short run and eventually rise, but “eventually” can easily take generations.\n- Robustness:\n  - The main results are described as surprisingly robust across the range of model variants examined."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Labor, Real wages, Robotics, Technology, Wage adjustments, Wages\n- Keywords: growth, income distribution., labor service, low-skill wage, market-clearing wage, per capita income, real wage, Real wages, Robotics, robots, Technological change, Wage adjustments, wage growth, wage income, wage inequality, Wages, WP\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/05/21/should-we-fear-the-robot-revolution-the-correct-answer-is-yes-44923"
    }
  ],
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    "Authors: Andrew Berg, Edward F Buffie, Luis-Felipe Zanna",
    "Published: May 21, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484300831.001",
    "Authors: Andrew Berg, Edward F Buffie, Luis-Felipe Zanna",
    "Date: May 21, 2018",
    "Series: Working Paper No. 2018/116",
    "Pages: 61",
    "DOI: https://doi.org/10.5089/9781484300831.001",
    "Core summary: Advances in artificial intelligence and robotics may constitute a “second industrial revolution.” The paper analyzes implications for inequality and output using a model with two key assumptions: (1) “robot” capital is distinct from traditional capital in its degree of substitutability with human labor; and (2) only capitalists and skilled workers save. A range of model variants reflecting different views of automation’s labor-market effects is analyzed.",
    "Distinct capital types:",
    "Saving behavior:",
    "Variants:",
    "Core result:",
    "Real wage dynamics:",
    "Robustness:",
    "Subject: Labor, Real wages, Robotics, Technology, Wage adjustments, Wages",
    "Keywords: growth, income distribution., labor service, low-skill wage, market-clearing wage, per capita income, real wage, Real wages, Robotics, robots, Technological change, Wage adjustments, wage growth, wage income, wage inequality, Wages, WP"
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