Policy Note 24: Participating in robot progress through education and participation

The consequences of digitalization and the increasing use of robots are among the topics of the Economic Talks at the Forum Alpbach from 28 to 30 August 2018. In the public debate, there are repeated reports that many jobs are threatened by digitalization and robots. Such reports are not new and can be traced back to industrialization. "Horror stories about half of all jobs being lost due to robots and digitalization are wrong," says Tobias Thomas, Director of the economic research institute EcoAustria. "Robots are not used everywhere where it is technically possible, but where it is profitable. Despite technical progress and automation, there has been no long-term decline in employment to date. More people are working in Austria today than ever before," says Thomas.

However, studies also show that automation can lead to a shift of employment shares to the service sector and to a dampening of middle wage incomes in particular, while profit incomes increase.

To ensure that as many people as possible can benefit from technological progress, the expansion of broadband infrastructure, further training and the teaching of digital skills in schools and companies are more important than ever. Employees can also participate in rising profits through more company shareholdings. In addition, regulations should not unduly restrict the development of new and partly digital markets and employment opportunities. The idea of a machine or robot tax, on the other hand, is doubly wrong: firstly, the problem is not a reduction in employment, but at best undesirable effects on the structure of income. On the other hand, a machine tax slows down investment and growth, so that the hoped-for employment effect fails to materialize, according to the conclusion of an EcoAustria policy note published today.