The impact of the digital revolution on the substitution of labour with capital

Keywords: nature of labour, content of work, technological unemployment, influence of technologies on the content of work, capital-labour hypothesis, increase of the technological demand hypothesis

Abstract

Subject. Throughout human history, the development of new technologies has led to an increase in the efficiency of labour, changed its nature and influenced the socio-economic life of people. Currently, the process of the digitalisation of the economy, as well as the distribution of robotics and artificial intelligence technologies, increase interest in scientific research aimed at assessing the impact of these technologies on labour and productivity.
Purposes. The purpose of this article was the analysis of the impact of modern technological innovation on labour demand at the macroeconomic level. To achieve these, we considered two key issues: what is the impact of the introduction of new technologies on overall demand and what impact does the integration of new technologies have on the economy.
Methodology. In order to achieve the objectives, an analysis of domestic and foreign research in this area was carried out, and approaches to statistical testing of the hypotheses were discussed. General scientific methods were used: analysis, synthesis, comparison, systematisation.
Conclusions. Two main approaches to forecasting the impact of new technologies on the labour market have been identified: the capital-labour hypothesis (techno-optimists) and an increase of the technological demand hypothesis (techno-sceptics). It was revealed that statistical testing of the impact of new technologies on aggregate labour demand is not available due to data limitations. It was also noted that these two approaches apply to different time perspectives and are not mutually exclusive. It was found that there are conflicting views on the expected consequences of new technologies for the labour market. Some people believe that technologies will increase skill and income inequality, while others predict that it will reduce inequality and make the digital economy accessible to people with different skills.

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Author Biography

Igor O. Rudakov, Plekhanov Russian University of Economics

Postgraduate Student

References

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Acemoglu, D., & Restrepo, P. (2019). Automation and new tasks: How technology displaces and reinstates labor. Journal of Economic Perspectives, 33(2), 3–30. https://doi.org/10.1257/jep.33.2.3

Acemoglu, D., & Restrepo, P. (2020). Robots and jobs: Evidence from us labor markets. Journal of Political Economy, 128(6), 2188–2244. https://doi.org/10.1086/705716

Arntz, M., Gregory, T., & Zierahn, U. (2017). Revisiting the risk of automation. Economics Letters, 159, 157–160. https://doi.org/10.1016/j.econlet.2017.07.001

Autor, D. H., & Dorn, D. (2013). The growth of low-skill service jobs and the polarization of the US Labor Market. American Economic Review, 103(5), 1553–1597. https://doi.org/10.1257/aer.103.5.1553

Bessen, J. (2019). Automation and jobs: when technology boosts employment. Economic Policy, 34(100), 589–626. https://doi.org/10.1093/EPOLIC/EIAA001

Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. WW Norton & Company.

Dauth, W., Findeisen, S., Südekum, J., & Wößner, N. (2017). The Impact of Industrial Robots on Workers. CEPR Discussion Paper.

Dillender, M., & Forsythe, E. (2022). Computerization of White Collar Jobs. SSRN Electronic Journal, w29866. https://doi.org/10.2139/ssrn.4068036

Dun, L., Yuan, G., & Lunqu, Y. (2020). The age of digitalization: Tendencies of the labor market. Digital Law Journal, 1(3), 14–20. https://doi.org/10.38044/2686-9136-2020-1-3-14-20

Faber, M. (2020). Robots and reshoring: Evidence from Mexican labor markets. Journal of International Economics, 127(127). https://doi.org/10.1016/j.jinteco.2020.103384

Frey, C. B., & Osborne, M. A. (2017). The future of employment: How susceptible are jobs to computerisation? Technological Forecasting and Social Change, 114(114), 254–280. https://doi.org/10.1016/j.techfore.2016.08.019

Graetz, G., & Michaels, G. (2018). Robots at Work. Review of Economics and Statistics, 100(5), 753–768. https://doi.org/10.1162/rest_a_00754

Marinoudi, V., Lampridi, M., Kateris, D., Pearson, S., Sørensen, C. G., & Bochtis, D. (2021). The future of agricultural jobs in view of robotization. Sustainability (Switzerland), 13(21). https://doi.org/10.3390/su132112109

Martens, B., & Tolan, S. (2018). Will This Time Be Different? A Review of the Literature on the Impact of Artificial Intelligence on Employment, Incomes and Growth. SSRN Electronic Journal, 8. https://doi.org/10.2139/ssrn.3290708

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Гоголева, Т. Н., Юрова, Е. С., Канапухин, П. А., & Никитина, Л. М. (2022). Профессионально-квалификационные трансформации качества труда в информационном обществе. Вестник ВГУ. Серия: Экономика и Управление, 4, 5–18. https://doi.org/https://doi.org/10.17308/econ.2022.4/10596

Капелюшников, Р. (2018). Влияние четвертой промышленной революции на рынок труда. Аист На Крыше. Демографический Журнал, 6(6), 32–36.

Устюжанина, Е. В., Сигарев, А. В., & Шеин, Р. А. (2017). Цифровая экономика как новая парадигма экономического развития. Национальные Интересы: Приоритеты и Безопасность, 13(10), 1788–1804.

Яковлева, Н. Г. (2022). Образование: роль в формировании человеческого потенциала, технологической и социально-экономической модернизации России. Российский Экономический Журнал, 4, 30–47. https://doi.org/https://doi.org/10.33983/0130-9757-2022-4-30-47

Published
2023-12-29
How to Cite
Rudakov, I. O. (2023). The impact of the digital revolution on the substitution of labour with capital. Proceedings of Voronezh State University. Series: Economics and Management, (4), 33-45. https://doi.org/10.17308/econ.2023.4/11665
Section
Economic Theory