Automation and Labor Demand: The Role of Different Types of Robotic Applications
Year: 2021 Volume: 71 Issue: 3 Pages: 220-244
Abstract: Recent literature documents significant heterogeneity in the strength of automation and the creation of new tasks across advanced countries. To address the observed cross-country heterogeneity, this paper provides detailed evidence on the role played by the adoption of industrial robots by application. We document that some robots played a more important role in the replacement of workers than others did. After controlling for potential confounding factors such as ICT, manufacturing share, and trade unions, we found significant evidence for a relationship between displacement and industrial robots installed for welding, soldering, and dispensing. The evidence for other industrial robots was mixed. The cross-country heterogeneity in the reinstatement effect remains unexplained and calls for further research.
JEL classification: J23, O33
Keywords: automation, technological change, displacement, reinstatement, labor demand
DOI: https://doi.org/10.32065/CJEF.2021.03.02
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