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Labor shortage and early robotization in Japan

Author

Listed:
  • Deng, Liuchun
  • Fujio, Minako
  • Lin, Xin
  • Ota, Rui

Abstract

In this paper, we study how labor shortage contributed to the rise of robots in the early stage of robotization in Japan from 1978 to 1991. Based on the newly digitalized industry-level data on labor shortage, we demonstrate that the shortage of unskilled factory workers is strongly positively associated with subsequent robot adoption. We also find the effect of the shortage of skilled factory workers on robot adoption to be negative, suggesting a potentially complementary role of skilled labor in the process of automation.

Suggested Citation

  • Deng, Liuchun & Fujio, Minako & Lin, Xin & Ota, Rui, 2023. "Labor shortage and early robotization in Japan," Economics Letters, Elsevier, vol. 233(C).
    • Handle: RePEc:eee:ecolet:v:233:y:2023:i:c:s0165176523004305
    DOI: 10.1016/j.econlet.2023.111404
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    References listed on IDEAS

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    1. Minami, Ryoshin, 1968. "The Turning Point in the Japanese Economy," Economic Review, Hitotsubashi University, vol. 19(3), pages 220-229, July.
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    5. Ni, Bin & Obashi, Ayako, 2021. "Robotics technology and firm-level employment adjustment in Japan," Japan and the World Economy, Elsevier, vol. 57(C).
    6. Tang, Chengjian & Huang, Keqi & Liu, Qiren, 2021. "Robots and skill-biased development in employment structure: Evidence from China," Economics Letters, Elsevier, vol. 205(C).
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    8. Dekle, Robert, 2020. "Robots and industrial labor: Evidence from Japan," Journal of the Japanese and International Economies, Elsevier, vol. 58(C).
    9. Deng, Liuchun & Müller, Steffen & Plümpe, Verena & Stegmaier, Jens, 2024. "Robots, occupations, and worker age: A production-unit analysis of employment," European Economic Review, Elsevier, vol. 170(C).
    10. Daron Acemoglu, 2002. "Directed Technical Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(4), pages 781-809.
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    Cited by:

    1. Lewandowski, Piotr & Szymczak, Wojciech, 2024. "Automation, Trade Unions and Atypical Employment," IZA Discussion Papers 17544, IZA Network @ LISER.
    2. Zhang, Jingting & Shi, Zhiru, 2025. "Suppress or let go? The time-varying roles of automation towards labor market," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 158-174.
    3. Piotr Lewandowski & Wojciech Szymczak, 2024. "Automation, Trade Unions and Involuntary Atypical Employment," IBS Working Papers 02/2024, Instytut Badan Strukturalnych.

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    Keywords

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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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