AUTHORS: Ilona Cserháti, Tibor Takács

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ABSTRACT: The paper is a first attempt to estimate both the number of potential job losses caused by automation in Hungary and its impact on poverty gap. The job loss is calculated by occupation, while its impact on poverty gap is determined by a static microsimulation model. The unemployment benefit duration in Hungary is the shortest one in the European Union, thus – as expected – the poverty gap will increase even if the present public work program is maintained by the state. It is also determined how much the employment as public workers of those who lose their jobs because of automation costs for the central budget. The estimation of number of job losses and the increase of poverty gap can be considered to be conservative, therefore they can be interpreted as lower bounds.

KEYWORDS: - automation, job loss, household income survey, microsimulation, poverty threshold, poverty gap

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WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 16, 2019, Art. #6, pp. 47-53


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