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.
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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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