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Benign Effects of Automation: New Evidence from Patent Texts

Author

Listed:
  • Katja Mann

    (Copenhagen Business School)

  • Lukas Püttmann

    (Unaffiliated)

Abstract

We provide a new measure of automation based on patents and study its employment effects. Classifying all U.S. patents granted between 1976 and 2014 as automation or nonautomation patents, we document a strong rise in the number and share of automation patents. We link patents to their industries of use and to commuting zones. To estimate the effect of automation, we use an instrumental variables strategy that relies on innovations developed independently from U.S. labor market trends. We find that automation technology has a positive effect on employment in local labor markets, driven by job growth in the service sector.

Suggested Citation

  • Katja Mann & Lukas Püttmann, 2023. "Benign Effects of Automation: New Evidence from Patent Texts," The Review of Economics and Statistics, MIT Press, vol. 105(3), pages 562-579, May.
    • Handle: RePEc:tpr:restat:v:105:y:2023:i:3:p:562-579
    DOI: 10.1162/rest_a_01083
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    Cited by:

    1. Dario Guarascio & Alessandro Piccirillo & Jelena Reljic, 2024. "Will robot replace workers? Assessing the impact of robots on employment and wages with meta-analysis," LEM Papers Series 2024/03, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Karina Doorley & Jan Gromadzki & Piotr Lewandowski & Dora Tuda & Philippe Van Kerm, 2023. "Automation and income inequality in Europe," LISER Working Paper Series 2023-11, Luxembourg Institute of Socio-Economic Research (LISER).
    3. Toon Van Overbeke, 2023. "Conflict or cooperation? Exploring the relationship between cooperative institutions and robotisation," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 550-573, September.
    4. Röser, Florian & Niemann, Stefan & Angelini, Daniele, 2023. "Fiscal Policy and Human Capital in the Race Against the Machine," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277672, Verein für Socialpolitik / German Economic Association.
    5. Jurkat, Anne & Klump, Rainer & Schneider, Florian, 2023. "Robots and Wages: A Meta-Analysis," EconStor Preprints 274156, ZBW - Leibniz Information Centre for Economics.
    6. Alex Chernoff & Gabriela Galassi, 2023. "Digitalization: Labour Markets," Discussion Papers 2023-16, Bank of Canada.

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