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Heartland Institute: Are Intelligent Machines Coming for Your Job and Your Wages?
11 July 2019
In an article for Bloomberg last month, Noah Smith notes that the hubbub about technological unemployment and falling wages is largely a lot of scary hand-wringing over what is possible rather than clear-headed analysis of what is probable. He summarizes recent research by Francesco Caselli and Alan Manning that appears as the first article in the first issue of the brand-new journal American Economic Review: Insights (you can find a $0 version here). Caselli and Manning build a theoretical model in which falling prices of investment goods relative to consumer goods, lead to higher average wages.