No. 2016-02 - Automation and the Welfare State: Technological Change as a Determinant of Redistribution Preferences

Date: 11 May 2016

Technological change is widely considered to be a key driver of the economic and occupational structure of affluent countries. Current advances in information technology have led to a significant substitution of routine work by capital, while occupations with abstract or interpersonal manual task structures are complemented or unaf- fected. We develop a simple theoretical framework in which individuals in routine task-intensive occupations prefer public insurance against the increased risk of future income loss resulting from automation. Moreover, we contend that this relation will be stronger for richer individuals who have more to lose from automation.

Stefan Thewissen David Rueda

Employment, Equity and Growth

Economic Growth and Innovation Economic Inequality

Automation and the Welfare State: Technological Change as a Determinant of Redistribution Preferences


Type: inet-working-paper

Thevissen, S. & Rueda, D. (2016) 'Automation and the Welfare State: Technological Change as a Determinant of Redistribution Preferences'. INET Oxford Working Paper No. 2016-02. Forthcoming in Comparative Political Studies


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