Labor and Machines - Complements or Substitutes?

Labor and Machines: Complements or

Substitutes?

Author Note

Benjamin Wiegner; Otto-von-Guericke-Str. 54A, 39104 Magdeburg; Matriculation number: 211184; Study programme: Business Economics; Number of semester studied: 7; Email: Benjamin.wiegner@st.ovgu.de

Seminar paper for

Chair of International Economics, Otto-von-Guericke-Universität Magdeburg; Faculty of Economics and Management; Course: Future Economic Trends

1st supervisor: Prof. Dr. Karl-Heinz Paqué

2nd supervisor: M.Sc. Fabian Horn

Date of submission: 9th of July 2016

Table of contents

List of Abbreviations        

List of Figures        

1        Introduction        

2        The Rise of Automation        

               2.1 Reasons for automation        

               2.2 Risks of automation        

3        Classification of skills        

               3.1 Repetitive skills        

               3.2 Cognitive skills        

               3.3 Further intelligence skills        

4        Interacting with machines        

               4.1 Collaboration with machines        

               4.2 Opportunities and alternatives for humans        

5        Conclusion        

        References        

List of Abbreviations

ASCI        Accelerated Strategic Computing Initiative

U.S.        United States

USD        United States Dollar

IBM        International Business Machines

MOOC        Massive Open Online Course

EMI        Electromagnetic Interference

AG                Aktiengesellschaft (German Designation)

KUKA        Keller und Knappich Augsburg

List of Figures

Figure 1: Possible combinations of skills and tasks