Cornell University

This is a past event. Its details are archived for historical purposes.

The contact information may no longer be valid.

Please visit our current events listings to look for similar events by title, location, or venue.

Joint Development Economics & Microeconomics Theory Workshop: Dilip Mookherjee

Friday, November 8, 2019 at 11:40am to 1:10pm

Uris Hall, 494
Central Campus

Dilip Mookherjee- Boston University

Growth, Automation and the Long Run Share of Labor (joint w/Debraj Ray)

Abstract:  We uncover a simple argument for long-term automation and decline in the labor share of national income, driven by capital accumulation rather than biased technical progress or rising markups. The argument hinges on a fundamental asymmetry across physical and human capital in modern economies. While physical capital can be scaled up for the same activity and accumulates in natural units, human capital accumulates principally via education and training that alters choice in to higher-skilled occupations, but—from the vantage point of a household or individual — cannot scale up the quantity of labor within a given occupation to an unlimited degree. This one asymmetry implies that in any growing economy, occupations must be progressively automated. Under a singularity condition on the technology of the robot-producing sector, we argue thatabasic "Kaldor fact" cannot hold: the share of capital in national income approaches 100%.   At the same time, the displacement of human labor is gradual: the rising share of capital could coexist with rising real wages. Our main result holds for a world with no technical progress, and is robust to endogenous technical change provided that there are symmetric opportunities for technical progress in all inputs.

 

 

 

Subscribe
Google Calendar iCal Outlook
Event Type

Class/ Workshop

Departments

Economics

Tags

economics, EconSeminar, EconDevelop, EconMicro

Hashtag

#CornellEcon

Contact E-Mail

uab1@cornell.edu

Contact Name

Ulrike Kroeller

Contact Phone

6072554254

Speaker

Dilip Mookherjee

Speaker Affiliation

Boston University

Open To

Cornell Economics Community - List Serve Members

Recent Activity