Module XIII·Article II·~1 min read
Technology and the Future of Labor
Labour, Social Policy, and the Welfare State
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Technology and the Future of Labor Automation, artificial intelligence, robots — technology is transforming the labor market. What are the political-economic consequences? How can policy be adapted?
Technological Waves
Fears of technological unemployment are nothing new: the Luddites destroyed weaving machines (1811–1816). Each industrial revolution sparked concerns.
Historically: new jobs were created to replace those lost.
Novelty of today’s wave: AI can replace cognitive labor, not only routine work.
Pace of change is higher.
Breadth of impact — many professions are at risk.
Distributional Effects
Polarization. Middle-skill jobs are disappearing. The top (highly skilled) and bottom (services, care) are growing. The middle class is shrinking.
Superstar effects. Technology amplifies the “winner-takes-all” effect. A few platforms, a few stars capture the market.
Capital vs. labor. Automation increases the returns to capital relative to labor. The share of labor in national income is declining.
Political Responses
Education and retraining. Lifelong learning, new skills. But not everyone is able to adapt.
Social protection. Universal basic income? Expansion of unemployment insurance? Universal services?
Platform regulation. The gig economy creates a precariat. New forms of labor protection are needed.
Taxation. Tax on robots? Redistribution from capital to labor?
Technological changes are inevitable. The question is how to distribute their benefits and costs fairly.
§ Act · what next