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Effects of Automation on Mexican Automotive Employment: 2013–2022

Author

Listed:
  • Vladimir Márquez Stone

    (National Autonomous University of Mexico)

  • Seyka Verónica Sandoval Cabrera

    (National Autonomous University of Mexico)

Abstract

This article analyses the empirical relationship between the introduction of automation technology—industrial robots—and the employment and wages of workers in the Mexican automotive industry from 2013 to 2022. Drawing on contemporary debates surrounding automation and technological unemployment, we describe the Mexican labour market’s conditions in the context of trade openness, the technological capabilities of the Mexican automotive industry, and the implementation of industrial robots. We examine this relationship using a random effects panel data model across 14 Mexican states, constructed with values from the Monthly Survey of the Manufacturing Industry (EMIM), the Mexican Ministry of Economy (SE), and the International Federation of Robotics. Our results suggest that adopting industrial robots correlates positively with the employment and salaries of automobile sector workers in the study period. We discuss the implications of changes in jobs and wages in the Mexican automotive industry, highlighting the consequences of technological change.

Suggested Citation

  • Vladimir Márquez Stone & Seyka Verónica Sandoval Cabrera, 2024. "Effects of Automation on Mexican Automotive Employment: 2013–2022," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(3), pages 661-680, September.
    • Handle: RePEc:spr:ijlaec:v:67:y:2024:i:3:d:10.1007_s41027-024-00505-5
    DOI: 10.1007/s41027-024-00505-5
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    References listed on IDEAS

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    1. Georgios Petropoulos & David Pichler & Francesco Chiacchio, 2018. "The impact of industrial robots on EU employment and wages- A local labour market approach," Bruegel Working Papers 25186, Bruegel.
    2. Daron Acemoglu & Pascual Restrepo, 2019. "Automation and New Tasks: How Technology Displaces and Reinstates Labor," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 3-30, Spring.
    3. Guendalina Anzolin & Antonio Andreoni & Antonello Zanfei, 2020. "Robot adoption and FDI driven transformation in the automotive industry," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 20(2), pages 215-237.
    4. Daron Acemoglu & Pascual Restrepo, 2017. "Secular Stagnation? The Effect of Aging on Economic Growth in the Age of Automation," American Economic Review, American Economic Association, vol. 107(5), pages 174-179, May.
    5. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    6. Jay Dixon & Bryan Hong & Lynn Wu, 2021. "The Robot Revolution: Managerial and Employment Consequences for Firms," Management Science, INFORMS, vol. 67(9), pages 5586-5605, September.
    7. Anzolin, Guendalina & Andreoni, Antonio & Zanfei, Antonello, 2022. "What is driving robotisation in the automotive value chain? Empirical evidence on the role of FDIs and domestic capabilities in technology adoption," Technovation, Elsevier, vol. 115(C).
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    More about this item

    Keywords

    Automation; Industrial robot; Manufacturing; Employment; Wages; Automotive industry;
    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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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