The Evolution of Technological Substitution in Low-Wage Labor Markets

A-Tier
Journal: Review of Economics and Statistics
Year: 2024
Volume: 106
Issue: 4
Pages: 1045-1063

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper uses minimum wage hikes to evaluate the susceptibility of low-wage employment to technological substitution. We find that automation is accelerating and supplanting a broader set of low-wage routine jobs since the 2008–2009 financial crisis. Simultaneously, low-wage interpersonal jobs are increasing and offsetting routine job loss. However, interpersonal job growth does not appear to be enough, as it was prior to the financial crisis, to fully offset the negative effects of automation on low-wage routine jobs. Employment losses are most evident among non-Asian people of color who experience outsized losses at routine jobs and smaller gains at interpersonal jobs.

Technical Details

RePEc Handle
repec:tpr:restat:v:106:y:2024:i:4:p:1045-1063
Journal Field
General
Author Count
2
Added to Database
2026-01-24