Kopafbeelding agenda CPB

Optimal Taxation of Robots

Tuesday November 14th 2017 Uwe Thümmel (VU) will give a presentation titled 'Optimal Taxation of Robots'

DateTuesday, 14 November 2017
Time13:00 - 14:00
LocationCPB office (seminar room 2, Zeedistelzaal), Bezuidenhoutseweg 30, the Hague
PresentationUwe Thümmel (VU)
DiscussantArjan Lejour (CPB)
Working languageEnglish
RubricLabour market

The CPB organises seminars for researchers. In these seminars academic papers are presented and discussed. The preliminary findings, presented and discussed, are not intended for publication in any form.
Journalists with questions about seminars, please contact Suzanne van Gils: +31 6 21560776.
Seminars are held on Tuesday from 13.00h to 14.00h.

I study the optimal taxation of robots and labor income in a model in which robots substitute for routine work and complement non-routine work. The model features intensive-margin labor supply, endogenous wages, and occupational choice. I show that the optimal robot tax is, in general, not zero which violates production efficiency. The robot tax is used to exploit general equilibrium effects to compress the wage distribution, making redistribution less distortive, thereby increasing welfare. The sign of the robot tax is ambiguous if routine workers are found in the middle of the wage distribution. Using the model for quantitative analysis based on US data, I find that the optimal robot tax is small and positive.

Disclaimer: 'The views and analysis presented in the seminar do not necessarily reflect the opinion of the CPB'

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