UNDERSTANDING CONSEQUENCES FOR PUBLIC FINANCES
University of Oxford (lead)
In many European countries, income tax and collective contributions make up a considerable part of total tax receipts. A growing literature has convincingly established the adverse effects of automation on employment and wages in local labour markets. A fall in taxable wage income implies a negative impact of automation on fiscal revenue, other things being equal. Automation could, however, also increase the productivity of the government sector. In this program, we empirically study how these processes may play out.
We also study the consequences of robotization and capital flow for capital taxation.