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Automation, workers’ skills and job satisfaction

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  • Henrik Schwabe
  • Fulvio Castellacci

Abstract

When industrial robots are adopted by firms in a local labor market, some workers are displaced and become unemployed. Other workers that are not directly affected by automation may however fear that these new technologies might replace their working tasks in the future. This fear of a possible future replacement is important because it negatively affects workers’ job satisfaction at present. This paper studies the extent to which automation affects workers’ job satisfaction, and whether this effect differs for high- versus low-skilled workers. The empirical analysis uses microdata for several thousand workers in Norway from the Working Life Barometer survey for the period 2016–2019, combined with information on the introduction of industrial robots in Norway from the International Federation of Robotics. Our identification strategy exploits variation in the pace of introduction of industrial robots in Norwegian regions and industries since 2007 to instrument workers’ fear of replacement. The results indicate that automation in industrial firms in recent years have induced 40% of the workers that are currently in employment to fear that their work might be replaced by a smart machine in the future. Such fear of future replacement does negatively affect workers’ job satisfaction at present. This negative effect is driven by low-skilled workers, which are those carrying out routine-based tasks, and who are therefore more exposed to the risks of automation.

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  • Henrik Schwabe & Fulvio Castellacci, 2020. "Automation, workers’ skills and job satisfaction," PLOS ONE, Public Library of Science, vol. 15(11), pages 1-26, November.
  • Handle: RePEc:plo:pone00:0242929
    DOI: 10.1371/journal.pone.0242929
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    Cited by:

    1. Nikolova, Milena & Cnossen, Femke & Nikolaev. Boris, 2022. "Robots, Meaning, and Self-Determination," GLO Discussion Paper Series 1191, Global Labor Organization (GLO).
    2. Lordan, Grace & Stringer, Eliza-Jane, 2022. "People versus machines: The impact of being in an automatable job on Australian worker’s mental health and life satisfaction," Economics & Human Biology, Elsevier, vol. 46(C).
    3. Fulvio Castellacci, 2021. "Innovation and social welfare: A new research agenda," Working Papers on Innovation Studies 20210705, Centre for Technology, Innovation and Culture, University of Oslo.
    4. Anna Matysiak & Daniela Bellani & Honorata Bogusz, 2023. "Industrial Robots and Regional Fertility in European Countries," European Journal of Population, Springer;European Association for Population Studies, vol. 39(1), pages 1-36, December.
    5. Gorny, Paul M. & Woodard, Ritchie C., 2020. "Don't Fear the Robots: Automatability and Job Satisfaction," MPRA Paper 103424, University Library of Munich, Germany.
    6. Sylvie Blasco, 2022. "Replaced or depressed? The effect of automation risk on workers' mental health," French Stata Users' Group Meetings 2022 09, Stata Users Group.
    7. Prem Borle & Kathrin Reichel & Susanne Voelter-Mahlknecht, 2021. "Is There a Sampling Bias in Research on Work-Related Technostress? A Systematic Review of Occupational Exposure to Technostress and the Role of Socioeconomic Position," IJERPH, MDPI, vol. 18(4), pages 1-22, February.
    8. Blasco, Sylvie & Rochut, Julie & Rouland, Benedicte, 2022. "Displaced or Depressed? The Effect of Working in Automatable Jobs on Mental Health," IZA Discussion Papers 15434, Institute of Labor Economics (IZA).

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