The Inefficiency of Inequality

Page 141

Economic Commission for Latin America and the Caribbean (ECLAC)

Chapter IV

Diagram IV.1 Technological disruption and the new employment environment

Zero marginal cost economy

Industrial Internet

On-demand economy

• New models of digital goods and services production and distribution

• New industrial models and production processes using:

• Very low marginal costs of distribution and duplication

-- Internet-connected machines and sensors -- Robots and machine learning -- Cyberphysical systems

• Business models involving temporary jobs and organizations concluding short-term contracts with self-employed workers

• Production by firms and by consumers

• Complex cognitive capabilities, problemsolving and data analysis, social skills, critical thinking and active learning

• Retraining and improvement of software development and data analysis capabilities

• Basic digital capabilities

Fewer jobs and new capabilities

Fewer jobs

Lower-quality jobs

Source: Economic Commission for Latin America and the Caribbean (ECLAC).

As robots have swiftly become cheaper and more capable, they have been taken up more and more quickly in different industrial sectors and countries, irrespective of local labour costs.32 Technological progress means that manageably sized robots, ranging from industrial robots to stock management robots and those capable of providing services in call centres, can be produced and easily incorporated into the production structure. Combined with their falling cost, this will speed up the incorporation of robots into production processes. In 2015, a welding robot cost US$ 8 per hour, much the same as human labour would cost for the same job in Brazil. It is estimated that costs will similarly equalize in the Mexican manufacturing sector in 2018 (see figure IV.18). Figure IV.18 Brazil and Mexico: average cost of a welding robot and of manufacturing labour, 2015-2032 (Dollars per hour) 12 10 8 6 4 Cost of manufacturing labour in Brazil Cost of a welding robot Cost of manufacturing labour in Mexico 2032

2031

2030

2029

2028

2027

2026

2025

2024

2023

2022

2021

2019

2018

2017

2016

2015

0

2020

2

Source: Economic Commission for Latin America and the Caribbean (ECLAC). 32

140

In 2015, 253,748 robots were sold, with demand coming mainly from the electronics, metallurgical and chemical industries and above all the automotive industry, with this last accounting for about 40% of the total. The next strongest source of robot demand after industry was services, which marks a major development given the effects on the labour market. That same year, 41,060 professional services robots were sold, with 46% of them being installed in logistical systems, 27% in defence services, 16% in the agriculture and livestock sectors and 3% in the medical area (International Federation of Robotics, 2016a, 2016b and 2016c).


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
The Inefficiency of Inequality by Publicaciones de la CEPAL, Naciones Unidas - Issuu