Effects of technological change and automation on industry structure and (wage-)inequality: insights from a dynamic task-based model

Abstract The advent of artificial intelligence is changing the task allocation workers and machines in firms’ production processes with potentially wide ranging effects on firms. We develop an agent-based simulation framework to investigate consequences different types automation for industry output, wage distribution, labor share, dynamics. It shown how competitiveness markets, particular barriers entry, changes that has various outcome variables, which extent heterogeneous distinct general skill endowments firms featuring offer rules affect channels via market outcomes.