Technological change and labour market policy preferences

Abstract:

This chapter explores how technological change affects the demand for labour market policy. A growing literature has argued that individuals whose jobs are at risk to be automated demand compensatory policies. The empirical evidence generally suggests a positive association between automation risk and preferences for unemployment benefit policies, but not for other policy areas such as active labour market policy or universal basic income. The chapter further discusses important recent debates about the overlap between objective and subjective risks related to job automation. Finally, it explores how the effect of technological change varies across countries and points to the role of existing labour market policy contexts.