Should-Read: Laura Tyson: Labor Markets in the Age of Automation

Should-Read: Laura Tyson: Labor Markets in the Age of Automation: “Skill-biased and labor-displacing intelligent machines and automation drive income inequality in several other ways…

…including winner-take-all effects that bring massive benefits to superstars and the luckiest few, as well as rents from imperfect competition and first-mover advantages in networked systems. Returns to digital capital tend to exceed the returns to physical capital and reflect power-law distributions, with an outsize share of returns again accruing to relatively few actors…. Whether the benefits of smart machines are distributed broadly will depend not on their design, but on the design of the policies surrounding them…. Unfortunately, Trump’s team hasn’t gotten the message…


Brad DeLong


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