O-Ring Automation
· NBER lists an issue month but no publication day; 15 January is used as a neutral sorting date.
Summary
Gans and Goldfarb model jobs whose task qualities multiply rather than add. When automation replaces some tasks, workers can focus their fixed time on the remaining bottlenecks; partial automation can therefore raise labor income, and adoption may occur in bundles rather than one task at a time.
Why it matters
The model explains why linear task-exposure indices can overstate displacement: automating one task changes the value of the worker's remaining tasks when production has strong complementarities.
What to keep in mind
This is a stylized model, not an employment estimate. Its conclusions depend on multiplicative task quality, worker time allocation, machine quality, and the assumed structure of the job.