Giuseppe Pernagallo (University of Turin) and Florent Dubois (University of Turin)

Postdocs/RTDA Seminars

Giuseppe Pernagallo  (University of Turin)

“Baumol meets automation”

Abstract: There is widespread concern about the effects of automation and artificial intelligence on employment and growth. If robots take the place of human workers, what effect will it have on price dynamics and the growth of economic systems? Building on Baumol’s famous paper (Baumol, 1967), we develop a dynamic two-sector macroeconomic model in which a high-automation sector grows faster than a low-automation sector and in which robots take the place of the human workforce. This economy shares common features with Baumol’s traditional model, but has important differences in terms of outlays and growth. In fact, keeping Baumol’s original setting intact, we reconcile his model with long-run growth using automation. The relative cost dynamics of this economy are closely dependent on the dynamics of wage growth, and steady growth can be achieved even in an unbalanced world. We also discuss why price stability could be a more urgent policy issue than unemployment in a world with varying degrees of automation.

Joint work with Salvatore Caruso (Engineering D.HUB)

Florent Dubois (University of Turin)

“Mine closures and domestic violence”

Abstract: While the socioeconomic impacts of mining are well-documented, little is known about how mine closures affect local communities. Our study focuses on South Africa, where mine closures are already a pressing reality. Using geolocated mining data and the 2016 Demographic and Health Survey, we employ a spatial difference-in-differences approach to examine the impact of these closures on domestic violence. We find that domestic violence rates are 2-3 times higher near closed mines compared to operational ones, with effects lasting up to 10 years post-closure. These findings are robust to a battery of checks. Our analysis shows that mine closures lead to significant decreases in male employment opportunities and job quality, as well as a decline in formalized intimate relationships, resulting in violence for intrinsic and instrumental reasons. Importantly, we show that domestic violence does not revert to pre-mining levels after mine shutdowns, underscoring the need for closure strategies in mining-specific Corporate Social Responsibility plans.

Joint work with Eliane Badaoui (University of Paris-Nanterre, EconomiX), Miracle Benhura (School of Economics and Finance, University of the Witwatersrand), Prudence Magejo (School of Economics and Finance, University of the Witwatersrand), and Laurine Martinoty (University Paris I Panthéon Sorbonne, Centre d’économie de la Sorbonne)