Automation and Experience: Investigating Changes in Human Capital within Occupations

Automation is one of the main explanations highlighted in the academic literature and popular business press for the great performance gains firms witness from using digital technologies. A plethora of studies has found that it increases managers need for higher levels of human capital, impacting both the type of workers and tasks in occupations. As studies typically regard changes in human capital across occupations, implications of automation on the human capital and nature of work within occupations are less understood. Using data on programmers in over 3,000 video game development projects, I find support that managers allocate on average more experienced workers to high automation projects. Building on behavioral theory, I consider cognitive challenges that very inexperienced and experienced workers face when confronted with automation