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COVID-19 and Implications for Automation

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  • Alex Chernoff
  • Casey Warman

Abstract

COVID-19 may accelerate the automation of jobs as employers invest in technology to safeguard against pandemics. We identify occupations that have high automation potential and also exhibit a high risk of viral infection. We examine regional variation in terms of which U.S. local labor markets are most at risk. Next, we outline the differential impacts COVID-19 may have on different demographic groups. We find that the highest-risk occupations in the U.S. are those held by females with mid- to low wage and education levels. Using comparable data for 25 other countries, we also find that women in this demographic are at the highest risk internationally. We examine monthly employment data from the U.S. and find that women in high-risk occupations experienced a larger initial decline in employment and a weaker recovery during the pandemic.

Suggested Citation

  • Alex Chernoff & Casey Warman, 2021. "COVID-19 and Implications for Automation," Staff Working Papers 21-25, Bank of Canada.
    • Handle: RePEc:bca:bocawp:21-25
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    More about this item

    Keywords

    Coronavirus disease (COVID-19); International topics; Labour markets;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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