Preferred policy responses to technological change: Survey evidence from OECD countries

Abstract

Abstract How do the labor market risks associated with technological change affect policy preferences? We argue that higher perceptions of technology-related risks should increase support for compensation and decrease support for social investment. We expect the opposite effect for individuals who use technology constantly at work, have a university degree and earn higher incomes. However, as the perception of technology-related employment risks in the latter group of individuals increases, so does their preference for compensatory and protective policy solutions to technological change. Our expectations are confirmed by novel data from a survey of 24 diverse Organisation for Economic Co-operation and Development (OECD) countries that includes specifically designed questions on technology-related risks and policy preferences. The results suggest that technology-related risks not only correlate with certain demographic and occupational characteristics, but also cross-cut them. Thus, technology-related risks might not only become a source of new cleavages between the losers and winners of technological change, but also the basis for new cross-class coalitions.

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