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Unions and Automation Risk: Who Bears the Cost of Automation?

Author

Listed:
  • Lee Changkeun

    (KDI School of Public Policy and Management, 263 Namsejong-ro, Seoul, 30149, South Korea)

  • Kim Olivia Hye

    (Economics, Seoul National University College of Social Sciences, 220-526, 1 Gwanak-ro, Gwanak-gu, Seoul, 08826, South Korea)

Abstract

Automation creates winners and losers. By examining establishment-level panel data, we explore how labour unions affect labor adjustment associated with automation. Although automation can increase new hires of junior and unskilled production workers, the presence of labour unions neutralizes these effects. The results suggest that labour unions have incentives to protect incumbent workers negatively affected by automation.

Suggested Citation

  • Lee Changkeun & Kim Olivia Hye, 2023. "Unions and Automation Risk: Who Bears the Cost of Automation?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 23(3), pages 843-851, July.
    • Handle: RePEc:bpj:bejeap:v:23:y:2023:i:3:p:843-851:n:1
    DOI: 10.1515/bejeap-2022-0446
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    References listed on IDEAS

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    1. Suresh Naidu, 2022. "Is There Any Future for a US Labor Movement?," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 3-28, Fall.
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    3. Battisti, Michele & Gravina, Antonio Francesco, 2021. "Do robots complement or substitute for older workers?," Economics Letters, Elsevier, vol. 208(C).
    4. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    robotics; automation; job; union;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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