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Robots, Tools, and Jobs: Evidence from Brazilian Labor Markets

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Listed:
  • Gustavo de Souza
  • Haishi Li

Abstract

What is the effect of robots and tools on employment and inequality? Using natural language processing and an instrumental variable approach, we discover that robots have led to a sizable decrease in the employment and wages of low-skill workers in operational occupations. However, tools - machines that complement labor – have led to an equally large reinstatement of these workers, increasing their employment and wages. Using a quantitative model, we find that the lower prices of robots and tools over the last 20 years have reduced inequality and increased welfare without a significant effect on employment.

Suggested Citation

  • Gustavo de Souza & Haishi Li, 2023. "Robots, Tools, and Jobs: Evidence from Brazilian Labor Markets," CESifo Working Paper Series 10813, CESifo.
    • Handle: RePEc:ces:ceswps:_10813
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    References listed on IDEAS

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    1. Lorenzo Caliendo & Maximiliano Dvorkin & Fernando Parro, 2019. "Trade and Labor Market Dynamics: General Equilibrium Analysis of the China Trade Shock," Econometrica, Econometric Society, vol. 87(3), pages 741-835, May.
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    More about this item

    Keywords

    robots; automation; tools; labor-saving; labor-augmenting;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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