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Automation and Labor Demand: The Role of Different Types of Robotic Applications

Author

Listed:
  • Martin Labaj

    (University of Economics in Bratislava, Slovakia)

  • Matej Vitalos

    (University of Economics in Bratislava, Slovakia; Supreme Audit Office of the Slovak Republic)

Abstract

Recent literature documents significant heterogeneity in the strength of automation and the creation of new tasks across advanced countries. To address the observed cross-country heterogeneity, this paper provides detailed evidence on the role played by the adoption of industrial robots by application. We document that some robots played a more important role in the replacement of workers than others did. After controlling for potential confounding factors such as ICT, manufacturing share, and trade unions, we found significant evidence for a relationship between displacement and industrial robots installed for welding, soldering, and dispensing. The evidence for other industrial robots was mixed. The cross-country heterogeneity in the reinstatement effect remains unexplained and calls for further research.

Suggested Citation

  • Martin Labaj & Matej Vitalos, 2021. "Automation and Labor Demand: The Role of Different Types of Robotic Applications," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 71(3), pages 220-244, November.
    • Handle: RePEc:fau:fauart:v:71:y:2021:i:3:p:220-244
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    File URL: https://journal.fsv.cuni.cz/mag/article/show/id/1488
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    More about this item

    Keywords

    automation; technological change; displacement; reinstatement; labor demand;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • 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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