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α: calibrated so average coauthorship-adjusted count equals average raw count
Do robots and artificial intelligence (AI) cause joblessness? We develop a dynamic general equilibrium model with search-matching frictions. In our model, robots substitute routine human tasks, and AI substitutes abstract human tasks. We find a cutoff level for the elasticity of substitution between routine labor input and robots, above which an increase in robot productivity leads to increased unemployment. We examine a scenario in which AI-driven automation of abstract tasks transforms high-skilled workers into unskilled ones. A substantial productivity gain through AI is required to offset the output loss associated with this labor displacement.