2023/23 LEM Working Paper Series

Innovation and the Labor Market: Theory, Evidence and Challenges

Nicoletta Corrocher, Daniele Moschella, Jacopo Staccioli and Marco Vivarelli
Innovation; Technological Change; Skills; Wages; Technological Unemployment.

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This paper deals with the complex relationship between innovation and the labor market, analyzing the impact of new technological advancements on overall employment, skills and wages. After a critical review of the extant literature and the available empirical studies, novel evidence is presented on the distribution of labor-saving automation (namely robotics and AI), based on natural language processing of US patents. This mapping shows that both upstream high-tech providers and downstream users of new technologies - such as Boeing and Amazon - lead the underlying innovative effort.
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