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on Knowledge Management and Knowledge Economy |
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Issue of 2021‒10‒18
two papers chosen by Laura Ştefănescu Centrul European de Studii Manageriale în Administrarea Afacerilor |
| By: | Marek Kapicka; Ctirad Slavik |
| Abstract: | This paper studies how labor income taxation interacts with the organization of knowledge and production, and ultimately the distribution of wages in the economy. A more progressive tax system reduces the time that managers allocate to work. This makes the organization of production less efficient and reduces wages at both tails of the distribution, which increases lower tail wage inequality and decreases upper tail wage inequality. The optimal tax system is substantially less progressive than the current one in the United States. However, if wages were exogenous, the optimal tax progressivity would be much higher. |
| Keywords: | inequality; wages; knowledge based hierarchies; income taxation; |
| JEL: | E6 H2 D8 L23 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp705&r= |
| By: | M. Battisti; M. Del Gatto; A. F. Gravina; C. F. Parmeter |
| Abstract: | The rise of artificial intelligence and automation is fueling anxiety about the replacementof workers with robots and digital technologies. Relying upon a (country-sector-year) constructed measure of robotic capital (RK), we study the extent of complementarity/substitutabilitybetween robots and workers at different skill levels (i.e., high-, medium- and low-skilled workers). The analysis points to a higher elasticity of substitution (EoS) - i.e., higher substitutability - between RK and unskilled labor, compared to skilled labor. Furthermore, we find evidence of polarizing effects, according to which middle-skilled workers, typically employed in intermediate routine and/or codifiable tasks, are the most vulnerable to robotization. Results turn out to be robust to using different - i) definitions of EoS; ii) computations of RK; iii) samples of countries and industries (WIOD vs EU KLEMS data); iv) skill grouping. |
| Keywords: | Automation;robotization;elasticity of substitution;technology;polarization |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:202104&r= |