To BOT, or not to BOT ... that is (no longer) the question

• Author: Pankhuri Dutt - Daniela Muhaj
• Pages: 11-13

Photo: Michael Spilotro

11IMF RESEARCH perspectives | imf.org/researchbulletin

TO BOT, TO BOT…

OR NOT

...that is

(no longer)

the question

The fear of labor being displaced

by technology in the ranks of

production factors has haunted us

since the early days of the industrial

revolution. In the early nineteenth

century, the low-productivity British

cottage industry was adversely

affected by an inux of capital

investments in power looms and

weaving machines in big factories.

However, research shows that the

wages of factory workers increased

while those of independent artisans

fell signicantly. Evidence has

been similarly perplexing when

we examine more recent cases of

automation. For instance, despite

the fear of joblessness due to

automation in the United States

in the 1950s and early 1960s, a

Pankhuri Dutt

Daniela Muhaj

pdutt@imf.org

dmuhaj@imf.org

Illustration: Stefan Lipsky