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Occupational mobility and automation: A data-driven network model

Abstract:
The potential impact of automation on the labour market is a topic that has generated significant interest and concern amongst scholars, policymakers and the broader public. A number of studies have estimated occupation-specific risk profiles by examining how suitable associated skills and tasks are for automation. However, little work has sought to take a more holistic view on the process of labour reallocation and how employment prospects are impacted as displaced workers transition into new jobs. In this article, we develop a data-driven model to analyse how workers move through an empirically derived occupational mobility network in response to automation scenarios. At a macro level, our model reproduces the Beveridge curve, a key stylized fact in the labour market. At a micro level, our model provides occupation-specific estimates of changes in short and long-term unemployment corresponding to specific automation shocks. We find that the network structure plays an important role in determining unemployment levels, with occupations in particular areas of the network having few job transition opportunities. In an automation scenario where low wage occupations are more likely to be automated than high wage occupations, the network effects are also more likely to increase the long-term unemployment of low-wage occupations.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1098/rsif.2020.0898rsif20200898

Authors

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Institution:
University of Oxford
Division:
MPLS
Department:
Mathematical Institute
Role:
Author
ORCID:
0000-0002-0189-7919
More by this author
Institution:
University of Oxford
Role:
Author
ORCID:
0000-0003-2729-3037
More by this author
Institution:
University of Oxford
Division:
MPLS
Department:
Mathematical Institute
Role:
Author
ORCID:
0000-0002-8750-8346
More by this author
Institution:
University of Oxford
Division:
MPLS
Department:
Mathematical Institute
Role:
Author
ORCID:
0000-0002-8333-561X
More by this author
Institution:
University of Oxford
Division:
MPLS
Department:
Mathematical Institute
Role:
Author
ORCID:
0000-0001-7871-073X


Publisher:
Royal Society
Journal:
Journal of the Royal Society Interface More from this journal
Volume:
18
Issue:
174
Article number:
20200898
Publication date:
2021-01-20
Acceptance date:
2020-12-15
DOI:
EISSN:
1742-5662
ISSN:
1742-5689


Language:
English
Keywords:
Pubs id:
1166329
Local pid:
pubs:1166329
Deposit date:
2021-03-19
ARK identifier:

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