Thursday, March 7, 2013

Will Robots Take Over The Labor Market?

Many people will argue that in the future technological advances such as robots will take over simple human tasks and have many people looking for a job. In an article published in 2011 titled "Rise against the Machine" argues that workers will not be able to keep up with technological change. The article says that soon companies will able to eliminate millions of jobs. The jobs eliminated would be one where workers do mundane tasks such as cashiers. There have been studies shown that it is not as bad as we think. One researcher, David Autor, argues against this theory. He says that economists look at simple production functions that say that capital and labor are two different components and together they make GDP. He argues that in the real world capital and labor actually come together. He believes that technology will complement labor. This means that technology will replace mundane tasks that can easily be automated and allow workers to handle more complex issues. An example is a worker that prints airline tickets. He says that now a robot will print the ticket so the worker can handle issues such as cancelled flights or people changing flights. In the end robots will actually help workers become more productive by allowing them to focus on more complex issues without dealing with mundane tasks. Also, humans will always have a cognitive advantage over robots and firms will not be willing to allow robots to take over these jobs.

3 comments:

  1. The link to the article:
    http://www.economist.com/news/finance-and-economics/21572741-robots-are-getting-more-powerful-need-not-be-bad-news

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  2. This is an interesting way to look at the issue of robots "taking over" the workforce. It is true that these types of technology will increase the overall productivity of the workforce but I still find it worrisome that technology might be taking the jobs of human workers. Getting the unemployment rate down seems to be a major concern for Americans currently, but with increasingly improving technology, it will only rise.

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  3. I see two sides to this and I cant decide which one I favor more. On one hand you have machines taking over human capital which would then put a lot of workers out of a job and could cause a large spike in the unemployment rate. But on the other hand if you bring in the machines then it will most likely significantly lower production costs which would be good for everybody.

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