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Automation, unemployment, and the role of labor market training

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  • Schmidpeter, Bernhard
  • Winter-Ebmer, Rudolf

Abstract

We provide comprehensive evidence on the consequences of automation risk on the career of unemployed workers and the mitigating role of labor market training. Using almost two decades of administrative data for Austria, we find that a higher risk of automation reduces the job finding probability; a problem which has increased over the past years. This development is associated with increasing re-employment wages and job stability. We also present new aspects of public training in times of technological progress. Provided training counteracts the negative impact of automation on the job finding probability. Its efficiency has declined over the past years, however.

Suggested Citation

  • Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2021. "Automation, unemployment, and the role of labor market training," European Economic Review, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:eecrev:v:137:y:2021:i:c:s0014292121001549
    DOI: 10.1016/j.euroecorev.2021.103808
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    11. Ramos, Minerva E. & Garza-Rodríguez, Jorge & Gibaja-Romero, Damian E., 2022. "Automation of employment in the presence of industry 4.0: The case of Mexico," Technology in Society, Elsevier, vol. 68(C).
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