Conclusions

Abstract

Abstract In this chapter, we conclude and identify areas for future research. We stress three points. First, automation is challenging any competitive advantage of low-cost labor of late developers. Second, due to low levels of skills, the labor force in many developing countries is vulnerable to replacement by labor-saving technology. Wage stagnation and premature deindustrialization are already unfolding—however, unemployment is not (yet) the main problem of technological change. Third, we need to ask different policy and research questions and be concerned about the jobs impact of technology and the political economy of automation rather than just automatability in principle. In that vein, the Lewis model and surplus labor theory could once more help us understand the dynamics of economic development and structural transformation.