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The impact of robots on equilibrium unemployment of unionized workers

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  • Pi, Jiancai
  • Fan, Yanwei

Abstract

This paper analyzes how utilization of robots generates an impact on equilibrium unemployment of unionized workers. We construct a three-stage dynamic game, and find that the effect of robot utilization on equilibrium unemployment depends on the characteristic of returns to scale in the robot manufacturing sector. Furthermore, we find that the impact on economy-wide equilibrium unemployment depends also on the proportion of unskilled labor in the whole economy.

Suggested Citation

  • Pi, Jiancai & Fan, Yanwei, 2021. "The impact of robots on equilibrium unemployment of unionized workers," International Review of Economics & Finance, Elsevier, vol. 71(C), pages 663-675.
    • Handle: RePEc:eee:reveco:v:71:y:2021:i:c:p:663-675
    DOI: 10.1016/j.iref.2020.10.003
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    More about this item

    Keywords

    Artificial intelligence; Robot; Automation; Equilibrium unemployment; Union;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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