Raising minimum wage will raise something else: An army of robots taking away folks’ jobs • The Register

Raising the minimum wage increases the chance employers will automate low-skill jobs away, according to a paper published this week through National Bureau of Economic Research, a non-profit group of econ wonks.

In People Versus Machines: The Impact of Minimum Wages on Automatable Jobs, Grace Lordan, associate professor in health economics at the London School of Economics, and David Neumark, professor of economics at the University of California, Irvine, show that raising the minimum wage may have unintended consequences.

“Overall, we find that increasing the minimum wage decreases significantly the share of automatable employment held by low-skilled workers,” the paper says. “Our estimates suggest that an increase of the minimum wage by $1 (based on 2015 dollars) decreases the share of low-skilled automatable jobs by 0.43 percentage point (an elasticity of −0.11).”

 

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Mike Rawson

Mike Rawson has recently re-awoken a long-standing interest in robots and our automated future. He lives in London with a single android - a temperamental vacuum cleaner - but is looking forward to getting more cyborgs soon.

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Raising minimum wage will raise something else: An army of robots taki…

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