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When automation hits jobs: Entrepreneurship as an alternative career path

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  • Daehyun Kim
  • Taekyun Kim
  • Wonjoon Kim
  • Hyejin Youn

Abstract

This study investigates the relationship between occupational automation risks and workers’ transitions to entrepreneurship using data from the Current Population Survey. We find that employees facing automation-related job displacement are inclined to shift toward unincorporated entrepreneurship, emphasizing entrepreneurship as a viable alternative career path. Noteworthy variations emerge when examining specific automation technologies, revealing a positive association between industrial robots and entrepreneurial transitions, whereas artificial intelligence displays a negative relationship. Gender disparities are observed, with female workers exhibiting a lower likelihood than males of transitioning into entrepreneurship. This study also shows a heightened prominence of entrepreneurial transitions during the early stages of the COVID-19 pandemic. By illuminating entrepreneurship as a response to job displacement, our results offer crucial policy insights into the labor market implications of automation.

Suggested Citation

  • Daehyun Kim & Taekyun Kim & Wonjoon Kim & Hyejin Youn, 2025. "When automation hits jobs: Entrepreneurship as an alternative career path," PLOS ONE, Public Library of Science, vol. 20(9), pages 1-20, September.
    • Handle: RePEc:plo:pone00:0331244
    DOI: 10.1371/journal.pone.0331244
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