Eckardt, Marcel Steffen (2022)
Minimum wages in an automating economy.
In: Journal of Public Economic Theory, 24 (1)
doi: 10.1111/jpet.12528
Artikel, Bibliographie
Dies ist die neueste Version dieses Eintrags.
Kurzbeschreibung (Abstract)
We explore the suitability of the minimum wage as a policy instrument for reducing emerging income inequality created by new technologies. For this, we implement a binding minimum wage in a task‐based framework, in which tasks are conducted by machines, low‐skill, and high‐skill workers. In this framework, an increasing minimum wage reduces the inequality between the low‐skill wage and the other factor prices, whereas the share of income of low‐skill workers in the national income is nonincreasing. Then, we analyze the impact of an automating economy along the extensive and intensive margins. In a setting with a minimum wage, it can be shown that automation at the extensive margin and the creation of new, labor‐intensive tasks do not increase the aggregate output in general, as the displacement of low‐skill workers counteracts the positive effects of cost‐savings. Finally, we highlight a potential trade‐off between less inequality of the factor prices and greater inequality of the income distribution when a minimum wage is introduced into an automating economy.
| Typ des Eintrags: | Artikel |
|---|---|
| Erschienen: | 2022 |
| Autor(en): | Eckardt, Marcel Steffen |
| Art des Eintrags: | Bibliographie |
| Titel: | Minimum wages in an automating economy |
| Sprache: | Englisch |
| Publikationsjahr: | 2022 |
| Ort: | Darmstadt |
| Verlag: | John Wiley & Sons |
| Titel der Zeitschrift, Zeitung oder Schriftenreihe: | Journal of Public Economic Theory |
| Jahrgang/Volume einer Zeitschrift: | 24 |
| (Heft-)Nummer: | 1 |
| DOI: | 10.1111/jpet.12528 |
| Zugehörige Links: | |
| Kurzbeschreibung (Abstract): | We explore the suitability of the minimum wage as a policy instrument for reducing emerging income inequality created by new technologies. For this, we implement a binding minimum wage in a task‐based framework, in which tasks are conducted by machines, low‐skill, and high‐skill workers. In this framework, an increasing minimum wage reduces the inequality between the low‐skill wage and the other factor prices, whereas the share of income of low‐skill workers in the national income is nonincreasing. Then, we analyze the impact of an automating economy along the extensive and intensive margins. In a setting with a minimum wage, it can be shown that automation at the extensive margin and the creation of new, labor‐intensive tasks do not increase the aggregate output in general, as the displacement of low‐skill workers counteracts the positive effects of cost‐savings. Finally, we highlight a potential trade‐off between less inequality of the factor prices and greater inequality of the income distribution when a minimum wage is introduced into an automating economy. |
| Freie Schlagworte: | automation, displacement effects, employment, inequality, labor demand, minimum wage, tasks, wages |
| Sachgruppe der Dewey Dezimalklassifikatin (DDC): | 300 Sozialwissenschaften > 330 Wirtschaft |
| Fachbereich(e)/-gebiet(e): | 01 Fachbereich Rechts- und Wirtschaftswissenschaften 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete > Fachgebiet Finanzwissenschaft und Wirtschaftspolitik |
| Hinterlegungsdatum: | 02 Jul 2024 23:13 |
| Letzte Änderung: | 02 Jul 2024 23:13 |
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Verfügbare Versionen dieses Eintrags
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Minimum wages in an automating economy. (deposited 11 Jul 2022 13:41)
- Minimum wages in an automating economy. (deposited 02 Jul 2024 23:13) [Gegenwärtig angezeigt]
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