According to a new research paper, boosts in the minimum wage bring increases in automation as employers replace low-skilled workers with devices such as robotic arms and self-service checkouts.
That's according to a National Bureau of Economic Research paper by David Neumark of UC Irvine and Grace Lordan of the London School of Economics. According to the paper, low-skilled workers will be hit hardest by unemployment after automation claims their jobs; particularly at risk are young, old, black and female workers with a high school education or less.
The paper, "People Versus Machines: The Impact of Minimum Wages on Automatable Jobs," says that many of the workers whose jobs were automated became unemployed right after a minimum-wage increase went into effect. The research, according to the report, is based on 35 years of government census data, from 1980 to 2015.
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