Even before the pandemic, “Automation can explain labor share decline, stagnant median wages and declining real wages at the bottom,” says Daron Acemoglu, a professor of economics at the Massachusetts Institute of Technology. “It’s the bottom that’s really getting hammered.
Acemoglu and colleagues unpacked decades of data on productivity, employment and the amount of money U. S. employers spend on worker wages vs. capital—that is, the machines, infrastructure and financial dealings required to make businesses happen.
What’s making things worse for these workers and their families is that the pandemic is also accelerating the arrival of remote work and automation.
Covid-19 Is Dividing the American Worker The rapid adoption of remote work and automation could accelerate inequalities in place for decades.
The pandemic has led to unemployment of workers in the service sector, retail and other fields at a scale and with a swiftness unprecedented in the historical record.
Technological change is accelerating during the pandemic. Here's why that could increase inequality. https://t.co/mXh1Z1UdHl— WSJ Tech (@WSJTech) August 22, 2020
Related videos from YouTube