Abstract Using a quantitative model that features technical progress in automation and endogenous skill choice, we show that, given the current U.S. tax system, sustained fall costs can lead to massive rise income inequality. We characterize optimal system this model. find it is robots while generations of routine workers, who no longer move non-routine occupations, are active labour force. Onc...

This is a slightly revised version of the MacDermott Lecture delivered (virtually) at Queen’s University, Belfast, on 27 May 2021.