Automation and income inequality

Automation (robotisation) of routine tasks has eliminated some jobs and put people in those jobs in a difficult position as their skills are no longer needed ( 1 ) . This normally leads to a decline in the wages of these people and an increase in income inequality between the unskilled (whose jobs are thus threatened by automation) and the most skilled (whose skills are still needed). Comparing OECD countries, we look at whether automation is related to income inequality (before redistribution). We do not see this link appearing when comparing countries: OECD countries that have automated more do not have higher income inequality (before redistribution). One explanation may be that automation generates an overall income supplement that also benefits low-income people. 1 See D. Acemoglu, P. Restrepo, “Tasks, Automation, and the Rise in US Wage Inequality”, NBER Working Paper no. 28920, June 2021.