By Tahsin Saadi Sedik and Jiae Yoo
From car manufacture to self-service checkouts, we all see how automation can transform the world of work—with lower costs and higher productivity on one hand, and more precarious employment for people on the other. But the COVID-19 pandemic added fuel to the fire. The rise in telework, for example, is hurting low-wage workers and increasing inequality. More broadly, if the pandemic accelerates the pace of automation, then we may face a jobless recovery for low-skilled workers. Our recent IMF staff research suggests that such concerns are justified.
Low-skilled workers are more at risk of displacement by robots than high-skilled workers, which reinforces existing inequality dynamics.
We focus on one form of automation, industrial robots, and analyzeRead More »