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Human capital investment and perceived automation risks: Evidence from 16 countries

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  • Innocenti, Stefania
  • Golin, Marta

Abstract

Robotics and artificial intelligence are transforming jobs and career paths, and equipping workers with the ability to gain new skills has become a strategic policy imperative. Previous studies showed that investment in human capital depends on locus of control, risk preferences and impatience. Yet in a changing world of work, the perceived risk of being replaced by a machine or an algorithm might also affect workers’ decisions to gain new professional skills. Using novel survey data from representative samples of working individuals in 16 countries, this paper shows that fear of automation is positively associated with workers’ intentions to invest in training activities outside their workplace. This effect is robust to controlling for other known behavioural traits. We also show that fear of automation reinforces the effect that internal locus of control exerts on retraining intentions.

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  • Innocenti, Stefania & Golin, Marta, 2022. "Human capital investment and perceived automation risks: Evidence from 16 countries," Journal of Economic Behavior & Organization, Elsevier, vol. 195(C), pages 27-41.
    • Handle: RePEc:eee:jeborg:v:195:y:2022:i:c:p:27-41
    DOI: 10.1016/j.jebo.2021.12.027
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    Cited by:

    1. Golin, M. & Rauh, C., 2022. "The Impact of Fear of Automation," Janeway Institute Working Papers 2229, Faculty of Economics, University of Cambridge.
    2. Clark Gordon L., 2022. "Agency, sentiment, and risk and uncertainty: fears of job loss in 8 European countries," ZFW – Advances in Economic Geography, De Gruyter, vol. 66(1), pages 3-17, May.
    3. Abeliansky, Ana Lucia & Prettner, Klaus, 2023. "Automation and population growth: Theory and cross-country evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 345-358.
    4. Vincenzo Scafarto & Tamanna Dalwai & Federica Ricci & Gaetano della Corte, 2023. "Digitalization and Firm Financial Performance in Healthcare: The Mediating Role of Intellectual Capital Efficiency," Sustainability, MDPI, vol. 15(5), pages 1-16, February.
    5. Philipp Lergetporer & Katharina Wedel & Katharina Werner, 2023. "Automatability of Occupations, Workers’ Labor-Market Expectations, and Willingness to Train," CESifo Working Paper Series 10862, CESifo.
    6. Sylvie Blasco, 2022. "Replaced or depressed? The effect of automation risk on workers' mental health," French Stata Users' Group Meetings 2022 09, Stata Users Group.
    7. Shutong Zhang & Jun Nagayasu, 2023. "Regional Policies’ Impacts on Urban Migration:Evidence from Special Economic Zones in China," TUPD Discussion Papers 45, Graduate School of Economics and Management, Tohoku University.
    8. Philipp Lergetporer & Katharina Wedel & Katharina Werner, 2023. "Automatability of Occupations, Workers' Labor-market Expectations, and Willingness to Train," Rationality and Competition Discussion Paper Series 488, CRC TRR 190 Rationality and Competition.
    9. Wu, Min & Wang, Nanxi & Yuen, Kum Fai, 2023. "Can autonomy level and anthropomorphic characteristics affect public acceptance and trust towards shared autonomous vehicles?," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    10. Blasco, Sylvie & Rochut, Julie & Rouland, Benedicte, 2022. "Displaced or Depressed? The Effect of Working in Automatable Jobs on Mental Health," IZA Discussion Papers 15434, Institute of Labor Economics (IZA).

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