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Using Google search data to examine factory automation and its effect on employment

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  • Diebold, Céline

Abstract

This paper revisits the link between robot adoption and employment across more than 100 European regions over a period of five years. A simple model is provided arguing that interest in robots precedes the actual deployment of robots. Thus, a novel instrument is introduced: interest in automation revealed by Google searches. This allows for a tentatively causal interpretation of the results. A small, yet significant positive aggregate effect is identified, along with heterogeneous effects across sex and educational attainment. The local effect on aggregate employment tends to be roughly twice as large as the spillover effect on neighbouring regions.

Suggested Citation

  • Diebold, Céline, 2025. "Using Google search data to examine factory automation and its effect on employment," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1301-1328.
    • Handle: RePEc:eee:ecanpo:v:86:y:2025:i:c:p:1301-1328
    DOI: 10.1016/j.eap.2025.03.042
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    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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