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Advanced Technology Adoption: Selection or Causal Effects?

Author

Listed:
  • Daron Acemoglu
  • Gary Anderson
  • David Beede
  • Catherine Buffington
  • Eric Childress
  • Emin Dinlersoz
  • Lucia Foster
  • Nathan Goldschlag
  • John Haltiwanger
  • Zachary Kroff
  • Pascual Restrepo
  • Nikolas Zolas

Abstract

This paper uses data from the 2019 Annual Business Survey to document that firms adopting advanced technologies are larger in terms of employment than other firms in their same industry and cohort. Using data from the Longitudinal Business Survey, we show that adopters were already large and growing faster before artificial intelligence, robotics, cloud computing, and specialized software systems became broadly available. These findings support the view that adopters are large because of selection and not because adopting advanced technologies for automation causally expands their employment.

Suggested Citation

  • Daron Acemoglu & Gary Anderson & David Beede & Catherine Buffington & Eric Childress & Emin Dinlersoz & Lucia Foster & Nathan Goldschlag & John Haltiwanger & Zachary Kroff & Pascual Restrepo & Nikolas, 2023. "Advanced Technology Adoption: Selection or Causal Effects?," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 210-214, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:210-14
    DOI: 10.1257/pandp.20231037
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    File URL: https://doi.org/10.3886/E187861V1
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    Citations

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    Cited by:

    1. Pawel Gmyrek & Hernan Winkler & Santiago Garganta, 2024. "Buffer or Bottleneck? Employment Exposure to Generative AI and the Digital Divide in Latin America," CEDLAS, Working Papers 0340, CEDLAS, Universidad Nacional de La Plata.
    2. Jacob Dominski & Yong Suk Lee, 2025. "Advancing AI Capabilities and Evolving Labor Outcomes," Papers 2507.08244, arXiv.org.
    3. Thao Trang Nguyen & Giacomo Domini & Marco Grazzi & Daniele Moschella & Tania Treibich, 2025. "Automation and the Margins of Export Performance: Evidence from French Firms," LEM Papers Series 2025/37, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. Jurkat, Anne & Klump, Rainer & Schneider, Florian, 2025. "Robots and wages: A meta-analysis," Structural Change and Economic Dynamics, Elsevier, vol. 75(C), pages 541-567.
    5. Oliver Kovacs, 2023. "Industrial Policy and Development: Time for Disciplined Action," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 22(4), pages 5-30.
    6. Andres, Raphaela & Niebel, Thomas & Sack, Robin, 2025. "Big data and firm-level productivity – A cross-country comparison," Information Economics and Policy, Elsevier, vol. 71(C).
    7. Engberg, Erik & Koch, Michael & Lodefalk, Magnus & Schroeder, Sarah, 2025. "Artificial intelligence, tasks, skills, and wages: Worker-level evidence from Germany," Research Policy, Elsevier, vol. 54(8).
    8. Arntz, Melanie & Böhm, Michael & Graetz, Georg & Gregory, Terry & Lehmer, Florian & Lipowski, Cäcilia, 2024. "Firm-level technology adoption in times of crisis," ZEW Discussion Papers 24-057, ZEW - Leibniz Centre for European Economic Research.
    9. Zhang, Yun & Samaniego, Roberto & Rodrigo, Rodimiro, 2025. "Robots and Inequality Between and Within Occupations," SocArXiv gtbm4_v1, Center for Open Science.
    10. Kathryn Bonney & Cory Breaux & Cathy Buffington & Emin Dinlersoz & Lucia S. Foster & Nathan Goldschlag & John C. Haltiwanger & Zachary Kroff & Keith Savage, 2024. "Tracking Firm Use of AI in Real Time: A Snapshot from the Business Trends and Outlook Survey," NBER Working Papers 32319, National Bureau of Economic Research, Inc.
    11. Tiziano Ropele & Alex Tagliabracci, 2026. "The economic impact of artificial intelligence: evidence from Italian firms," Questioni di Economia e Finanza (Occasional Papers) 1005, Bank of Italy, Economic Research and International Relations Area.
    12. Steve Gray & Tom Kemeny & Max Nathan & Ceren Ozgen & Guido Pialli & Jon Reades & Anna Rosso & Mateo Sere & Sameera Siddiqui & Anna Valero, 2026. "GRAPH-EE: building employer - employee panels from a knowledge graph and company microdata," CEP Discussion Papers dp2156, Centre for Economic Performance, LSE.
    13. gert Bijnens & Joep Konings & Aaron Putseys, 2025. "Unveiling the J-curve: How Intangibles Drive Productivity Mismeasurement," Working Papers of VIVES - Research Centre for Regional Economics 779815, KU Leuven, Faculty of Economics and Business (FEB), VIVES - Research Centre for Regional Economics.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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