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Measuring the technological bias of robot adoption and its implications for the aggregate labor share

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  • Koch, Michael
  • Manuylov, Ilya

Abstract

This paper investigates the technological bias of robot adoption using a rich panel data set of Spanish manufacturing firms over a 25-year period. We apply the production function estimation when productivity is multidimensional to the case of an automating technology, to reveal the Hicks-neutral and labor-augmenting technological change brought about by robot adoption within firms. Our results indicate a causal effect of robots on Hicks-neutral and labor-augmenting components of productivity. The biased technological change turns out to be an important determinant of the decline in the aggregate share of labor in the Spanish manufacturing sector.

Suggested Citation

  • Koch, Michael & Manuylov, Ilya, 2023. "Measuring the technological bias of robot adoption and its implications for the aggregate labor share," Research Policy, Elsevier, vol. 52(9).
    • Handle: RePEc:eee:respol:v:52:y:2023:i:9:s0048733323001324
    DOI: 10.1016/j.respol.2023.104848
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    More about this item

    Keywords

    Robots; Automation; Technological change; Productivity; Labor share;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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