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Automation of employment in the presence of industry 4.0: The case of Mexico

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  • Ramos, Minerva E.
  • Garza-Rodríguez, Jorge
  • Gibaja-Romero, Damian E.

Abstract

The automation and digitization of interconnected production processes have changed the labor demand by boosting the creation and destruction of occupations. In the context of the I4.0, this paper analyzes the relationship between automation risk, labor demand and sociodemographic characteristics for the Mexican occupations. Hence, we estimate a multinomial logit model by considering the dataset of the National Survey of Occupation and Employment (ENOE), from the first quarter of 2013–2018. We find that changes in labor demand due to automation depend on the automation risk probability, and sociodemographic and labor characteristics. As it is the case in other countries, we find that labor demand increases for those occupations with low-risk of automation that require high-skilled workers. However, surprisingly, the direction of labor demand is inverse in the characteristics of gender, age, and education.

Suggested Citation

  • Ramos, Minerva E. & Garza-Rodríguez, Jorge & Gibaja-Romero, Damian E., 2022. "Automation of employment in the presence of industry 4.0: The case of Mexico," Technology in Society, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:teinso:v:68:y:2022:i:c:s0160791x21003122
    DOI: 10.1016/j.techsoc.2021.101837
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    Cited by:

    1. Filippi, Emilia & Bannò, Mariasole & Trento, Sandro, 2023. "Automation technologies and the risk of substitution of women: Can gender equality in the institutional context reduce the risk?," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    2. Sarah Maggioli & Liliana Cunha, 2023. "A Systematic Review Discussing the Sustainability of Men and Women’s Work in Industry 4.0: Are Technologies Gender-Neutral?," Sustainability, MDPI, vol. 15(7), pages 1-17, March.
    3. Beier, Grischa & Matthess, Marcel & Shuttleworth, Luke & Guan, Ting & de Oliveira Pereira Grudzien, David Iubel & Xue, Bing & Pinheiro de Lima, Edson & Chen, Ling, 2022. "Implications of Industry 4.0 on industrial employment: A comparative survey from Brazilian, Chinese, and German practitioners," Technology in Society, Elsevier, vol. 70(C).
    4. Sanchis, Raúl G., 2023. "Towards a general equilibrium theory of allocation of time for the digital revolution era," Technology in Society, Elsevier, vol. 72(C).
    5. Kunkel, S. & Neuhäusler, P. & Matthess, M. & Dachrodt, M.F., 2023. "Industry 4.0 and energy in manufacturing sectors in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).

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    More about this item

    Keywords

    Automation; Industry 4.0; Employment; Occupations; Multinomial logit model;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • 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
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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