Technology’s impact on the labor market: bringing the economic substitution equation and adoption capacities back to the debate

Mainstream approach present technological progress as the main factor to explain the scope of automation. However, technological progress does not equate with adoption. In fact, in the peripheries, a higher potential for automation coexists with lower adoption. To explain this apparent contradiction, we use two theoretical contributions that are not considered in the future of work’s literature: Marxist’s “economic substitution equation” and adoption capacities from evolutionist studies. By combining these factors, it is clear that the current debate on reskilling as the main public policy to deal with AI based technological progress is insufficient as economic and adoption capacities limite the adoption process.JEL classification: F61 ; J31 ; O33.