Labor and jobs

Prof. David Autor speaks with Tony Dokoupil of CBS News about how the rise of artificial intelligence could change the quality of jobs. "What we've seen over the last four decades in the U.S. and many industrialized economies is what economists call labor market polarization, which means the hollowing out of the middle set of jobs,” says Autor. The "hollowing out" of the middle has led to some in the labor market moving up and making more money, while others are now making less — and "that's especially where the pain happens," Autor adds. 

Prof. David Autor speaks with ABC News reporter Max Zahn about whether new AI technologies could displace workers. "The thing we shouldn't be worried about at present or for quite a while is the quantity of jobs," said Autor. "We should be worried about the quality of jobs."

A study co-authored by Senior Lecturer Donald Sull found that the top factor in employee retention is corporate environment, reports Ellen Rosen for The New York Times. Sull says that a toxic work culture was “10 times more predictive of having a higher-than-industry-average attrition rate than compensation.”

Writing for the Financial Times, Prof. Daron Acemoglu and his co-authors explore their research demonstrating that “the biggest shift when a chief executive with a business degree takes charge is a decline in wages and the share of revenues going to labor.” Acemoglu and his co-authors note that while many business schools have updated their offerings to include more ethics courses, they emphasize the importance of “being aware of what managers with business degrees used to do is an important step in reflecting on how we can build better programs.”

MIT researchers have found that “automation is the primary reason the income gap between more and less educated workers has continued to widen,” reports Ellen McGirt for Fortune. “This single one variable…explains 50 to 70% of the changes or variation between group inequality from 1980 to about 2016,” says Prof. Daron Acemoglu

The Economist highlights several studies by MIT researchers on income inequality and wages in the U.S., noting that “Clem Aeppli of Harvard and Nathan Wilmers of MIT found that earnings inequality basically reached a plateau after 2012.” Additionally, Prof. David Autor and his colleagues have found that wages for the bottom half of workers have been growing roughly two percentage points faster than for the upper half of workers.

Prof. Daron Acemoglu and his colleagues have found that “managers educated at business schools were more likely to favor shareholders over employees,” writes University of London Prof. André Spicer for the Financial Times. The researchers found that “employees working for companies run by a business school-educated manager earned, on average, 6 percent less in the US and 3 percent less in Denmark,” writes Spicer.

New research by Prof. David Autor finds that in the U.S. the fast wage growth underway likely reflects a more competitive labor market for workers, writes Martin Sandbu for the Financial Times. “If more workers than before are shifting from worse-paid to better-paid jobs, then wage acceleration is a welcome indicator of an equally welcome reallocation of labor towards more productive activities,” Sandbu writes.

Prof. Daron Acemoglu speaks with Politico reporter Derek Robertson about his new study examining the impacts of automation on the workforce and economy. “This discussion gets framed around ‘Will robots and AI destroy jobs, and lead to a jobless future,’ and I think that's the wrong framing,” says Acemoglu. “Industrial robots may have reduced U.S. employment by half a percent, which is not trivial, but nothing on that scale [of a “jobless future”] has happened — but if you look at the inequality implications, it's been massive.”

A new study by Prof. Daron Acemoglu, former postdoctoral fellow Nicolaj Mühlbach and London School of Economics Prof. Andrew Scott finds that while American jobs have become age-friendlier, “older workers haven’t been the biggest beneficiaries of this age-friendly job bonanza,” reports Andrew Van Dam for The Washington Post. The researchers found, “workers age 62 and older were significantly more willing to accept a smaller paycheck if a job involved moderate physical activity, more time sitting and the autonomy to choose how to do their job,” writes Van Dam.

TechCrunch reporter Brian Heater spotlights a new study by Prof. Daron Acemoglu that examines the impact of automation on the workforce. “We’re starting with a very clear premise here: in 21st-century America, the wealth gap is big and only getting bigger,” writes Heater. “The paper, ‘Tasks, Automation, and the Rise in U.S. Wage Inequality,’ attempts to explore the correlation between the growing income gap and automation.”

Popular Science reporter Andrew Paul writes that a study co-authored by Institute Prof. Daron Acemoglu examines the impact of automation on the workforce over the past four decades and finds that “‘so-so automation’ exacerbates wage gaps between white and blue collar workers more than almost any other factor.”

Writing for The Hill, Prof. Daniela Rus, director of CSAIL, explores how automation could ease the supply chain crisis. “Automation in these settings doesn’t mean replacing employees, but developing more robust inventory management software and using systems like scanners and conveyors that make our jobs easier,” writes Rus. “This would enable warehouse workers to focus on other more detail-oriented roles, from overseeing the operation of forklifts to improving the efficiencies of distribution centers.”

Prof. Daron Acemoglu speaks with Freakonomics Radio host Stephen Dubner about his research exploring how having a boss who attended business school can impact a business. “The main findings are actually very simple,” says Acemoglu. “As soon as you have a business school manager, you see a relative decline in wages and labor share.”

Researchers from the Sloan School of Management have found that toxic work culture is the driving force behind many employees leaving their jobs, reports James Reid for Forbes. “A strong, healthy culture is the execution engine of an organization, which makes it the most valuable asset any organization can possess,” writes Reid.