Identifier

130

Date

2018

Document Type

Honors Thesis

Degree Name

Bachelor of Business Administration

Major

Economics

Committee Member

Jamin Speer

Abstract

This paper investigates the relationship between automation and the employment outcomes of various workers. Given the rising capital costs involved in automation, I hypothesize that firms will reduce their costs by laying off the highest paid workers within a given industry. Using the American Community Survey and data from the International Federation of Robotics, I find support for firms' preference for lower cost workers as automation increases. Findings show that workers with demographic characteristics that are likely to result in higher earnings (i.e. male, white, college educated, older-aged workers) are more likely to be displaced by rises in automation. These results suggest that while automation may have great costs in worker displacement, it may also reduce inequalities among various worker demographics.

Comments

Undergraduate Honor's Thesis

Library Comment

Honors thesis originally submitted to the Local University of Memphis Honor’s Thesis Repository.

Notes

Data is provided by the student.

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