ASU Researcher Offers Alternate Theory For Internet-Related Job Loss
If you haven’t yet heard the term “robocalypse,” you probably will soon, as more businesses are replacing human labor with machines.
But, technology-related job loss is not just attributable to innovation. One theorist said it’s about company consolidation.
Last week, a paper from MIT said a rise in so-called “super-star” companies is powered by globalization and the internet -- and as big companies get bigger, so does job loss.
An Arizona State University researcher agrees. Hendrik Bessembinder of ASU calculated in a recent study that over the past 90 years, just 86 of the 26,000 or so stocks have accounted for about half of all stock-market wealth created.
He said it’s this concentration in industries that spurs faster technological change. As concentration increases, he said, labor needs decline.
Bessembinder said companies are motivated to continue to compete for the next new technological innovation.