IDEAS home Printed from https://ideas.repec.org/a/vrs/suvges/v35y2025i1p83-112n1005.html
   My bibliography  Save this article

The Dynamics of Labor Income Share in an Era of Robotic Automation: A Panel Data Analysis in High-Level Automation Countries

Author

Listed:
  • Erkişi Kemal

    (Antalya Bilim University, Antalya, Turkiye)

  • Çetin Melike

    (Antalya Bilim University, Antalya, Turkiye)

Abstract

This study examines the impact of robotic capital, physical capital, technological change, human capital, and trade globalization on labor income share dynamics in the era of robotic automation. Focusing on China, Germany, Japan, South Korea, and the United States – countries responsible for 79.2% of global industrial robotic installations from 2010 to 2023 – our analysis employs key variables such as labor income share, annual industrial robot installations, gross fixed capital formation, researchers in research and development, human capital index, and trade of goods and services. Estimations using Arellano-Bond, Generalized Estimating Equations, Driscoll-Kraay, and Arellano-Froot-Rogers methods reveal a consistent negative association between labor income share and robotic capital. Conversely, a positive relationship is observed with research and development. Notably, the study underscores the consistent negative impact of physical capital accumulation on labor income share across the Arellano-Bond, Driscoll-Kraay, and Arellano-Froot-Rogers methods. Furthermore, globalization, as assessed by the Arellano-Bond, Generalized Estimating Equations, and Driscoll-Kraay methods, is identified as a factor adversely affecting labor income share.

Suggested Citation

  • Erkişi Kemal & Çetin Melike, 2025. "The Dynamics of Labor Income Share in an Era of Robotic Automation: A Panel Data Analysis in High-Level Automation Countries," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 35(1), pages 83-112.
    • Handle: RePEc:vrs:suvges:v:35:y:2025:i:1:p:83-112:n:1005
    DOI: 10.2478/sues-2025-0005
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/sues-2025-0005
    Download Restriction: no
    File URL: https://libkey.io/10.2478/sues-2025-0005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Tiare Rivera, 2019. "Efectos de la automatización en el empleo en Chile," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 34(1), pages 3-49, April.
    2. Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(1), pages 35-78.
    3. Philippe Aghion & Céline Antonin & Simon Bunel, 2019. "Artificial Intelligence, Growth and Employment: The Role of Policy," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 510-511-5, pages 149-164.
    4. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    5. Wolfgang Dauth & Sebastian Findeisen & Jens Suedekum & Nicole Woessner, 2021. "The Adjustment of Labor Markets to Robots [“Skills, Tasks and Technologies: Implications for Employment and Earnings]," Journal of the European Economic Association, European Economic Association, vol. 19(6), pages 3104-3153.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    7. Daron Acemoglu & Pascual Restrepo, 2018. "Artificial Intelligence, Automation and Work," Boston University - Department of Economics - Working Papers Series dp-298, Boston University - Department of Economics.
    8. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    9. Berg, Andrew & Buffie, Edward F. & Zanna, Luis-Felipe, 2018. "Should we fear the robot revolution? (The correct answer is yes)," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 117-148.
    10. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5, October.
    11. Tracy Mott, 1988. "The Real Wage And The Marginal Product of Labor," Economics Working Paper Archive wp_12, Levy Economics Institute.
    12. Christian Gunadi & Hanbyul Ryu, 2021. "Does the rise of robotic technology make people healthier?," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2047-2062, September.
    13. Daron Acemoglu & Pascual Restrepo, 2017. "Robots and Jobs: Evidence from US Labor Markets," Boston University - Department of Economics - Working Papers Series dp-297, Boston University - Department of Economics.
    14. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    15. Ergül, Özgür & Göksel, Türkmen, 2020. "The effects of technological development on the labor share of national income," Economic Modelling, Elsevier, vol. 87(C), pages 158-171.
    16. Ballestar, María Teresa & Díaz-Chao, Ángel & Sainz, Jorge & Torrent-Sellens, Joan, 2020. "Knowledge, robots and productivity in SMEs: Explaining the second digital wave," Journal of Business Research, Elsevier, vol. 108(C), pages 119-131.
    17. Douglas, Paul H, 1976. "The Cobb-Douglas Production Function Once Again: Its History, Its Testing, and Some New Empirical Values," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 903-915, October.
    18. repec:hal:spmain:info:hdl:2441/7n49nkmngd8448a5ts5gt5ade0 is not listed on IDEAS
    19. repec:spo:wpmain:info:hdl:2441/7n49nkmngd8448a5ts5gt5ade0 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Barbieri, Laura & Mussida, Chiara & Piva, Mariacristina & Vivarelli, Marco, 2019. "Testing the employment and skill impact of new technologies: A survey and some methodological issues," MERIT Working Papers 2019-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Wang, Ting & Zhang, Yi & Liu, Chun, 2024. "Robot adoption and employment adjustment: Firm-level evidence from China," China Economic Review, Elsevier, vol. 84(C).
    3. Ghodsi, Mahdi & Stehrer, Robert & Barišić, Antea, 2024. "Assessing the impact of new technologies on wages and labour income shares," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    4. Shimizu, Ryosuke & Momoda, Shohei, 2023. "Does automation technology increase wage?," Journal of Macroeconomics, Elsevier, vol. 77(C).
    5. Geiger, Niels & Prettner, Klaus & Schwarzer, Johannes A., 2018. "Automatisierung, Wachstum und Ungleichheit," Hohenheim Discussion Papers in Business, Economics and Social Sciences 13-2018, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    6. Luo, Wei & Tang, Lixin & Yang, Yaxin & Zou, Xianqiang, 2025. "Robots as guardians: Industrial automation and workplace safety in China," Journal of Development Economics, Elsevier, vol. 172(C).
    7. Caselli, Mauro & Fracasso, Andrea & Scicchitano, Sergio & Traverso, Silvio & Tundis, Enrico, 2025. "What workers and robots do: An activity-based analysis of the impact of robotization on changes in local employment," Research Policy, Elsevier, vol. 54(1).
    8. David Autor & Anna Salomons, 2018. "Is Automation Labor Share–Displacing? Productivity Growth, Employment, and the Labor Share," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 49(1 (Spring), pages 1-87.
    9. Huang, Yuhong & Gao, Yajia, 2024. "The impact of financial technology on employment: Protection or disruption?," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    10. Gallipoli, Giovanni & Makridis, Christos A., 2018. "Structural transformation and the rise of information technology," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 91-110.
    11. Klump, Rainer & Jurkat, Anne & Schneider, Florian, 2021. "Tracking the rise of robots: A survey of the IFR database and its applications," MPRA Paper 107909, University Library of Munich, Germany.
    12. Gregory, Terry & Salomons, Anna & Zierahn, Ulrich, 2016. "Racing With or Against the Machine? Evidence from Europe," VfS Annual Conference 2016 (Augsburg): Demographic Change 145843, Verein für Socialpolitik / German Economic Association.
    13. Cui, Huijie & Liang, Shangkun & Xu, Canyu & Junli, Yu, 2024. "Robots and analyst forecast precision: Evidence from Chinese manufacturing," International Review of Financial Analysis, Elsevier, vol. 94(C).
    14. Manuchehr Irandoust, 2024. "Employment and technology: Creative creation or creative destruction? An asymmetric analysis," Australian Economic Papers, Wiley Blackwell, vol. 63(2), pages 201-219, June.
    15. Wang, Linhui & Cao, Zhanglu & Dong, Zhiqing, 2023. "Are artificial intelligence dividends evenly distributed between profits and wages? Evidence from the private enterprise survey data in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 342-356.
    16. Rodrigo Adão & Costas Arkolakis & Federico Esposito, 2019. "General Equilibrium Effects in Space: Theory and Measurement," NBER Working Papers 25544, National Bureau of Economic Research, Inc.
    17. Alonso, Cristian & Berg, Andrew & Kothari, Siddharth & Papageorgiou, Chris & Rehman, Sidra, 2022. "Will the AI revolution cause a great divergence?," Journal of Monetary Economics, Elsevier, vol. 127(C), pages 18-37.
    18. Tiare Rivera, 2019. "Efectos de la automatización en el empleo en Chile," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 34(1), pages 3-49, April.
    19. Teimouri, Sheida & Zietz, Joachim, 2020. "Coping with deindustrialization: A panel study for early OECD countries," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 26-41.
    20. Charles I. Jones & Paul M. Romer, 2010. "The New Kaldor Facts: Ideas, Institutions, Population, and Human Capital," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 224-245, January.

    More about this item

    Keywords

    Robotic Automation; Labor Income; Robotic Capital; Technological Change; Panel Data;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:suvges:v:35:y:2025:i:1:p:83-112:n:1005. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.