Author Topic: Workers Losing Wage Bargaining Power to Automation  (Read 276 times)

rcjordan

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Workers Losing Wage Bargaining Power to Automation
« on: October 09, 2019, 09:30:11 PM »
"Conclusion:
The labor share in the United States has declined roughly 7 percentage points over the past two decades. The decline started in the early 2000s and accelerated during the Great Recession. After the recession, the labor share failed to bounce back despite strong employment gains, particularly over the past few years.

...Having the option to automate jobs strengthens firmsí bargaining power against workers. This keeps wage increases stagnant despite productivity gains. We find that automation contributed substantially to the decline in the labor share since the early 2000s."


https://www.frbsf.org/economic-research/publications/economic-letter/2019/september/are-workers-losing-to-robots/

ergophobe

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Re: Workers Losing Wage Bargaining Power to Automation
« Reply #1 on: October 10, 2019, 12:19:41 AM »
So this means that even as unemployment drops, it will not necessarily force wages up as it traditionally has.