NBER paper: automation erodes the meaning of work before it eliminates jobs

ArtificialOther · x · 2026-09-08

Joshua S. Gans's NBER working paper (W35559) studies jobs where workers value both output and knowing it depends on their own contribution. A credible machine alternative weakens that second source of meaning even when the worker is retained. Key findings: a "meaning externality" lets a developer profit by publicly demonstrating a machine before licensing it, lowering the value of the human alternative; this can make profitable development socially harmful. Full wage adjustment raises compensation for the meaning loss; partial adjustment makes workers bear part of it. Quality improves output, while public salience alone weakens human work. Automation can reduce the value of work before it eliminates jobs.

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