Stagnant Wages and Robots 

I propose a production structure with automation in terms of industrial robots that allows explaining why wages did not increase with labor productivity over the last decades. Before the invention of industrial robots, wages and labor productivity necessarily move in lockstep. After robots are introduced and widely used a growing wedge between wages and labor productivity is driven by progress in automation. The robots-based explanation of the growing wedge between wages and labor productivity complements theories related to an increasing market power of firms and a decreasing negotiating power of labor unions. The video is based on the paper
Prettner, K. (2023). Stagnant Wages in the Face of Rising Labor Productivity: The Potential Role of Industrial Robots. Finance Research Letters 58, 104687.
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