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Policy Network:
Mind the gap: capital and labour in the digital economy

14 December 2015

A recent study by Guy Michaels and Georg Graetz shows that robots might not drive people out of work. Instead they raise productivity which reduces the prices of goods and services. Lower prices increase demand to which firms react by hiring new workers. Although robots might not destroy jobs overall, there are strong indications that technology profoundly changes the structure of labour markets.

This article was published online by Policy Network on December 14, 2015
Link to article here

Related publications
Robots at work: the impact on productivity and jobs Georg Graetz and Guy Michaels. Article in CentrePiece, Volume 20, Issue 1 Summer 2015
'Robots at Work', Georg Graetz and Guy Michaels, Centre for Economic Performance Discussion Paper No.1335, March 2015

Related Links
Georg Graetz webpage
Guy Michaels webpage
Labour Markets Programme webpage

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