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Industrial robots, and information and communication technology: the employment effects in EU labour markets

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  • Stefan Jestl

Abstract

This paper explores the effects of industrial robots and information and communication technology (ICT) on regional employment in European Union countries. The empirical analysis relies on a harmonised comprehensive regional dataset that combines business statistics and national and regional accounts data. This rich dataset enables us to provide detailed insights into the employment effects of automation and computerisation in EU regions for the period 2001–16. The results suggest relatively weak effects on regional total employment dynamics. However, industrial robots show negative employment effects in local manufacturing industries and positive employment effects in local non-manufacturing industries. While the negative effect is concentrated in particular local manufacturing industries, the positive effect has operated in local service industries. Information technology investments show positive employment effects in local manufacturing industries and some individual local service industries, while communication technology investments are shown to be irrelevant for employment dynamics. In contrast, software and database investments have had a predominantly negative association with local employment.

Suggested Citation

  • Stefan Jestl, 2024. "Industrial robots, and information and communication technology: the employment effects in EU labour markets," Regional Studies, Taylor & Francis Journals, vol. 58(11), pages 1981-1998, November.
    • Handle: RePEc:taf:regstd:v:58:y:2024:i:11:p:1981-1998
    DOI: 10.1080/00343404.2023.2292259
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    1. repec:ces:ceswps:_10987 is not listed on IDEAS
    2. Eder, Andreas & Koller, Wolfgang & Mahlberg, Bernhard, 2025. "Industrial robots and employment change in manufacturing: A decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 591-602.
    3. Iztok Palčič & Jasna Prester, 2024. "Effect of Usage of Industrial Robots on Quality, Labor Productivity, Exports and Environment," Sustainability, MDPI, vol. 16(18), pages 1-16, September.
    4. Florencia Jaccoud & Fabien Petit & Tommaso Ciarli & Maria Savona, 2024. "Automation and Employment over the Technology Life Cycle: Evidence from European Regions," CEPEO Working Paper Series 24-02, UCL Centre for Education Policy and Equalising Opportunities, revised Feb 2024.
    5. Guarascio, Dario & Reljic, Jelena & Stöllinger, Roman, 2025. "Diverging paths: AI exposure and employment across European regions," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 11-24.
    6. Eder, Andreas & Koller, Wolfgang & Mahlberg, Bernhard, 2024. "Industrial robots and employment change in manufacturing: A combination of index and production-theoretical decomposition analysis," MPRA Paper 121128, University Library of Munich, Germany.
    7. Liu, Zhinan & Han, Chao & Hou, Wendi, 2025. "Business tax reform and human capital in service industry firms: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 107(C).
    8. Xu, Chongchong & Du, Anna Min & Lin, Boqiang, 2025. "Robot adoption and corporate supply chain efficiency: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 94(C).
    9. Zhou, Huilin & Wang, Linhui & Cao, Yutong & Li, Jincheng, 2025. "The impact of artificial intelligence on labor market: A study based on bibliometric analysis," Journal of Asian Economics, Elsevier, vol. 98(C).

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