Invites you to a

Macroeconomics and Trade seminar presented by

Evgenia Dechter

(University of New South Wales) 

Automation and occupational choice

Co-authors:

Gonzalo Castex (University of New South Wales)

Emma Chow (Reserve Bank of Australia)

Wednesday 5 October

2.00pm – 3.30pm

Via Zoom: Meeting Link

Abstract: Automation of production processes often involves job destruction and workers displacement. We develop a model where jobs may disappear due to automation. Assuming that information about the automation risk is available, we derive implications for occupational sorting and human capital accumulation. Workers sort into occupations considering the associated automation risks. Occupations with higher automation risk attract workers with lower learning ability and lower productivity. We show that entry wages are higher in riskier jobs, but human capital accumulation is lower. We test the model empirically and find support to these theoretical implications in the data.

For further information contact: Macroeconomics and Trade seminar series coordinator Dr James Graham (james.a.graham@sydney.edu.au)

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