Chloe Welch

Since the creation of automation, income disparities have grown rapidly, disproportionately affecting middle-skill working Americans. This analysis investigates the extent to which automation has widened the income gap within the manufacturing sector. In particular, we focus on how wage polarization varies across skill levels, firm size, and a variety of labor markets within the United States. Using a comparative regression analysis in addition to an examination of peer-reviewed literature, the relationship between automation and earning disparity is investigated. Findings across the reviewed literature consistently indicate that an increase in robot density correlates with a decline in median manufacturing income with low-skill workers.