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Measuring the Technological Bias of Robot Adoption and its Implications for the Aggregate Labor Share

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  • Michael Koch

    (Department of Economics and Business Economics, FIND - Research Centre for Firms and Industry Dynamics, Aarhus University)

  • Ilya Manuylov

    (Department of Economics and Business Economics, FIND - Research Centre for Firms and Industry Dynamics, Aarhus University)

Abstract

This paper investigates the technological bias of robot adoption using a rich panel data set of Spanish manufacturing firms over a 25-year period. We apply the production function estimation when productivity is multidimensional to the case of an automating technology, to reveal the Hicks-neutral and labor-augmenting technological change brought about by robot adoption within firms. Our results indicate a causal effect of robots on Hicks-neutral and labor-augmenting components of productivity. The biased technological change turns out to be an important determinant of the decline in the aggregate share of labor in the Spanish manufacturing sector.

Suggested Citation

  • Michael Koch & Ilya Manuylov, 2022. "Measuring the Technological Bias of Robot Adoption and its Implications for the Aggregate Labor Share," Economics Working Papers 2022-01, Department of Economics and Business Economics, Aarhus University.
    • Handle: RePEc:aah:aarhec:2022-01
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    References listed on IDEAS

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    5. Daron Acemoglu & Claire Lelarge & Pascual Restrepo, 2020. "Competing with Robots: Firm-Level Evidence from France," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 383-388, May.
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    More about this item

    Keywords

    Robots; Automation; Technological change; Productivity; Labor share;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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