Lukasz Rachel
@LukaszRachel
🇪🇺🇵🇱🇬🇧 Associate professor of economics @UCL_econ. Research Affiliate of the @CEPR_org. Co-director of @UCLPolicyLab. Member of @napokolenia.
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A really nice paper about something that I spend a lot of time thinking about: how changes in technology can increase the scope of "who can do what task", but in doing so flattens out gains from tenure, specialization, longer hours, etc.
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New paper on the game theory of pacing the frontier. When is it possible? What will it take?
TLDR: whether wages go ⬆️ a lot as the K-share ⬆️ depends almost entirely on Pi:=cost of doing the newly automated tasks with L vs w AI. If you write Y=K^aL^{1-a} you're implicitly assuming Pi is huge, like 10x-35x 🤖 No surprise u'll find huge wages gains. Pls, report your Pi‼️
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I recently argued that AI-driven rise in capital share may not bring as large wage gains as some expect.
That was all steady state stuff:( and
Time for transitions! 1/N #Econtwitter#
Updated paper here:
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I recently argued that AI-driven rise in capital share may not bring as large wage gains as some expect.
That was all steady state stuff:( and
Time for transitions! 1/N #Econtwitter#
Updated paper here:
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If AI raises the capital share of income, will workers ultimately benefit?
Recent analyses using a workhorse macro model concluded: YES.
I wrote a paper explaining why these conclusions are somewhat misleading. The future of wages might not be so rosy.
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