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Robots are not always bad for employment and wages

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  • Sequeira, Tiago Neves
  • Garrido, Susana
  • Santos, Marcelo

Abstract

We reassess the impact that robotization has on wages and employment, using a database on US commuting zones from 1990 to 2007. Using an argument based on the transitional dynamics we show that the negative displacement effects of robotization can be surpassed by productivity and reallocation effects, leading to positive effects on employment after a certain level of penetration in industry. In fact, we confirm this effect through regressions that are subject to different robustness checks. Previous evidence according to which robotization always decreases employment and wages are thus not confirmed.

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  • Sequeira, Tiago Neves & Garrido, Susana & Santos, Marcelo, 2021. "Robots are not always bad for employment and wages," International Economics, Elsevier, vol. 167(C), pages 108-119.
    • Handle: RePEc:eee:inteco:v:167:y:2021:i:c:p:108-119
    DOI: 10.1016/j.inteco.2021.06.001
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    Cited by:

    1. David E. Bloom & Klaus Prettner & Jamel Saadaoui & Mario Veruete, 2023. "Artificial intelligence and the skill premium," Department of Economics Working Papers wuwp353, Vienna University of Economics and Business, Department of Economics.
    2. Dario Guarascio & Alessandro Piccirillo & Jelena Reljic, 2024. "Will robot replace workers? Assessing the impact of robots on employment and wages with meta-analysis," LEM Papers Series 2024/03, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Claudio Costanzo, 2022. "Robots, Jobs, and Optimal Fertility Timing," Working Papers ECARES 2022-36, ULB -- Universite Libre de Bruxelles.
    4. Xiekui Zhang & Hongfei Zhu, 2023. "The Impact of Industrial Intelligence on Carbon Emissions: Evidence from the Three Largest Economies," Sustainability, MDPI, vol. 15(7), pages 1-15, April.
    5. Bo Chen & Dong Tan, 2023. "Industrial Robots and the Employment Quality of Migrant Workers in the Manufacturing Industry," Sustainability, MDPI, vol. 15(10), pages 1-21, May.
    6. Filippi, Emilia & Bannò, Mariasole & Trento, Sandro, 2023. "Automation technologies and their impact on employment: A review, synthesis and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    7. 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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    More about this item

    Keywords

    Robots; Employment; Fourth industrial revolution; Nonlinear effects of robots;
    All these keywords.

    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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