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Job Creators or Job Killers? Heterogeneous Effects of Industrial Robots on UK Employment

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  • Joel Kariel

Abstract

There is concern about robots taking our jobs. This analysis looks at the impact of industrial robot adoption in the UK. Using a novel instrument to deal with endogeneity of robot adoption, estimates suggest that higher robot use is associated with increased employment and some evidence of a positive effect on part‐time pay, contrary to evidence from other countries. However, there is a large amount of heterogeneity across industries. The results show that industrial robots have directly replaced workers in automobile manufacturing. On the other hand, they have had positive effects on other areas of the labour market such as services.

Suggested Citation

  • Joel Kariel, 2021. "Job Creators or Job Killers? Heterogeneous Effects of Industrial Robots on UK Employment," LABOUR, CEIS, vol. 35(1), pages 52-78, March.
    • Handle: RePEc:bla:labour:v:35:y:2021:i:1:p:52-78
    DOI: 10.1111/labr.12192
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    References listed on IDEAS

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    Cited by:

    1. Caselli, Mauro & Fracasso, Andrea & Scicchitano, Sergio & Traverso, Silvio & Tundis, Enrico, 2025. "What workers and robots do: An activity-based analysis of the impact of robotization on changes in local employment," Research Policy, Elsevier, vol. 54(1).
    2. Eder, Andreas & Koller, Wolfgang & Mahlberg, Bernhard, 2025. "Industrial robots and employment change in manufacturing: A decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 591-602.
    3. Franziska Brall & Ramona Schmid, 2023. "Automation, robots and wage inequality in Germany: A decomposition analysis," LABOUR, CEIS, vol. 37(1), pages 33-95, March.
    4. Anna Matysiak & Daniela Bellani & Honorata Bogusz, 2023. "Industrial Robots and Regional Fertility in European Countries," European Journal of Population, Springer;European Association for Population Studies, vol. 39(1), pages 1-36, December.
    5. Stefan Jestl, 2022. "Industrial Robots, and Information and Communication Technology: The Employment Effects in EU Labour Markets," wiiw Working Papers 215, The Vienna Institute for International Economic Studies, wiiw.
    6. Anna Matysiak & Daniela Bellani & Honorata Bogusz, 2022. "Industrial robots and fertility in European countries," Working Papers 2022-26, Faculty of Economic Sciences, University of Warsaw.
    7. Franco, Chiara & Suppressa, Francesco, 2025. "Robot, trade and employment: Unravelling the relationship within the European context," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 407-422.
    8. Eder, Andreas & Koller, Wolfgang & Mahlberg, Bernhard, 2024. "Industrial robots and employment change in manufacturing: A combination of index and production-theoretical decomposition analysis," MPRA Paper 121128, University Library of Munich, Germany.
    9. Jurkat, Anne & Klump, Rainer & Schneider, Florian, 2023. "Robots and Wages: A Meta-Analysis," EconStor Preprints 274156, ZBW - Leibniz Information Centre for Economics.

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