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Advanced Technology Adoption: Selection or Causal Effects?

Author

Listed:
  • Daron Acemoglu
  • Gary Anderson
  • David Beede
  • Catherine Buffington
  • Eric Childress
  • Emin Dinlersoz
  • Lucia Foster
  • Nathan Goldschlag
  • John Haltiwanger
  • Zachary Kroff
  • Pascual Restrepo
  • Nikolas Zolas

Abstract

This paper uses data from the 2019 Annual Business Survey to document that firms adopting advanced technologies are larger in terms of employment than other firms in their same industry and cohort. Using data from the Longitudinal Business Survey, we show that adopters were already large and growing faster before artificial intelligence, robotics, cloud computing, and specialized software systems became broadly available. These findings support the view that adopters are large because of selection and not because adopting advanced technologies for automation causally expands their employment.

Suggested Citation

  • Daron Acemoglu & Gary Anderson & David Beede & Catherine Buffington & Eric Childress & Emin Dinlersoz & Lucia Foster & Nathan Goldschlag & John Haltiwanger & Zachary Kroff & Pascual Restrepo & Nikolas, 2023. "Advanced Technology Adoption: Selection or Causal Effects?," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 210-214, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:210-14
    DOI: 10.1257/pandp.20231037
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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