Automation and Labor Demand: The Role of Different Types of Robotic Applications

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.