Type
Article
Title
What Are the Labor and Product Market Effects of Automation? : New Evidence from France
In
Research Briefs in Economic Policy
Author(s)
AGHION Philippe - Harvard University (Author)
ANTONIN Céline - Observatoire français des conjonctures économiques (Author)
BUNEL Simon - (Author)
JARAVEL Xavier - London School of Economics and Political Science (Author)
Editor
US : Paris : OFCE
Number
225
Pages
1 - 2 p.
Keywords
Automation, Employment, Plant-level, Firm-level, Labor market, Product market, Manufacturing
Abstract
EN
What are the effects of automation in the labor and product markets? A host of factors may be at play. Automating the production process may displace certain workers, raising the possibility of technological unemployment, but these displacement effects could be offset by a productivity effect. Automation may induce productivity gains, increase market demand and the scale of production, and in turn increase labor demand. Depending on the extent to which productivity gains are passed through to consumers by producers, consumers could benefit from lower prices or producers could retain higher profits. Finally, because of business-stealing effects from firms that automate and displace their competitors, the industry-level employment and the price and profit effects of automation may differ from their firm-level or plant-level impacts. [First paragraph]

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