Cef.up WIP Seminar "Explaining the Labor Share: Automation Vs Labor Market Institutions"

April 12, 2019 | 1-2pm | Room 609

Cef.up WIP Seminar “Explaining the Labor Share: Automation Vs Labor Market Institutions”
Luis Guimarães
Queens University Belfast and Cef.Up
(Joint work with Pedro Gil, Universidade do Porto - FEP)

Abstract:

In this paper, we build a theoretical model to study the effects of automation and labor market institutions on the labor share. In our model, firms choose between two technologies: an automated technology and amanual technology. In this context, the labor share reflects both the average wage level (versus output) and the distribution of firms between the two technologies. Our model offers three main insights. First, automation-augmenting shocks reduce the labor share but increase employment and wages. Second, labormarket institutions (relative to automation) play an almost insignificant role in explaining the labor share. Third, our model suggests that the US labor share only (clearly) falls after the late 1980’s because of a contemporaneous acceleration of automation’s productivity.

Please fill out the Voucher and return to cefup.sec@fep.up.pt 

For further information and papers or abstracts, please visit our website.

We are looking forward to seeing you there.
Kind regards,
Alper Çenesiz

 

Friday, April 12, 2019, 1-2 pm
Room    609   
Coordinator:   Alper Çenesiz    acenesiz@fep.up.pt
To confirm attendance: Ana Bonança    abonanca@fep.up.pt

“Cef.Up is financed by Portuguese Public Funds through FCT (Fundação para a Ciência e a Tecnologia) – in the framework of the project UID/ECO/04105/2019”.