What is it about?

We show how education can mitigate wage inequality as jobs become automated. Our model predicts that education can reduce inequality by up to 3 percentage points. Education policies that promote automation-complementing skill formation would reduce the need for costly labor market and wealth redistribution interventions later in life.

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Why is it important?

If the quality of education does not improve, then automation will lead to an increase in wage inequality.


Writing this article was a great pleasure as it has co-authors with whom I have had long standing collaborations. This article also addresses a key aspect of automation.

Harry Patrinos
World Bank Group

Read the Original

This page is a summary of: The Role of Education in Mitigating Automation’s Effect on Wage Inequality, Labour, December 2020, Wiley,
DOI: 10.1111/labr.12187.
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