Job displacement through technology, how technological shocks affect households' income and unemployment

I study how an investment shock affects different types of labor. I show that investment shocks are an important source of job displacement and labor income risk. I use geographical variation in labor routine intensity and show that investment shock have differential and long lasting effects on routine and non-routine jobs. Areas with a high share of routine labor experience higher unemployment and lower wage growth following a positive investment shock. In contrast, areas with a low share of routine labor are affected significantly less or even benefit. Using detailed industry level observations, I show that an investment shock operates by substituting capital for labor in occupations that have the potential to be automated. I use individual worker microdata to measure the job displacement risk. I show that a positive investment shock significantly increases the probability of job loss over multiple years