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Hideki Nakamura, Osaka City University | The Bogen Family Department of Economics

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Hideki Nakamura, Osaka City University

Date: 
Wed, 13/12/201714:15-15:45
Location: 
room 4212

Individual Probabilities of Unemployment under Automation

abstract:

This study considers mismatch unemployment under automation. We elucidate the individual probabilities of unemployment (IPU) of workers who have their own unsuited job categories.  Given labor demand of an economy, regardless of a decrease in the availability of job categories caused by automation, the mean of IPU which is equal to the macroeconomic unemployment rate remains unchanged. However, the variance of IPU does increase, that is, more heterogeneity of workers can reveal.  Examining the dynamics of IPU,  job mismatch can be severe with the possibility of unemployment persistence.