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Robots and Unions: The Moderating Effect of Organised Labour on Technological Unemployment

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Listed:
  • Haapanala, Henri

    (University of Antwerp)

  • Marx, Ive

    (University of Antwerp)

  • Parolin, Zachary

    (Bocconi University)

Abstract

We analyse the moderating effect of trade unions on industrial employment and unemployment in countries facing exposure to industrial robots. Applying random effects within-between regression to a pseudo-panel of observations from 28 advanced democracies over 1998-2019, we find that stronger trade unions in a country are associated with a greater decline in the industry sector employment of young and low-educated workers. We also show that the unemployment rates for low-educated workers remain constant in strongly unionised countries with increasing exposure to robots, whereas in weakly unionised countries, low-educated unemployment declines with robot exposure but from a higher starting point. Our results point to unions exacerbating the insider-outsider effects of technological change within the industrial sector, which however is not fully passed on to unemployment.

Suggested Citation

  • Haapanala, Henri & Marx, Ive & Parolin, Zachary, 2022. "Robots and Unions: The Moderating Effect of Organised Labour on Technological Unemployment," IZA Discussion Papers 15080, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15080
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    More about this item

    Keywords

    trade unions; technological change; outsiders/insiders; dual labour market; unemployment; labour economics;
    All these keywords.

    JEL classification:

    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining

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