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The impact of robots in Latin America: Evidence from local labor markets

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  • Andrés César
  • Guillermo Falcone
  • Irene Brambilla
  • Leonardo Gasparini

Abstract

We study the effect of robots on labor markets in Argentina, Brazil, and Mexico, the major robot users in Latin America, during the period 2004–2016. We exploit spatial and time variations in exposure to robots arising from initial differences in industry specialization across geographic locations and the evolution of robot adoption across industries, to estimate a causal effect of robots on local labor market outcomes. We find that district’s exposure to robots causes a relative deterioration in labor market indicators such us unemployment and labor informality. We document that robots mainly replace formal salaried jobs, affecting young and semi-skilled workers to a greater extent, and that informal employment acts as a buffer that prevents a larger increase in unemployment.
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Suggested Citation

  • Andrés César & Guillermo Falcone & Irene Brambilla & Leonardo Gasparini, 2021. "The impact of robots in Latin America: Evidence from local labor markets," Asociación Argentina de Economía Política: Working Papers 4451, Asociación Argentina de Economía Política.
  • Handle: RePEc:aep:anales:4451
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    References listed on IDEAS

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    More about this item

    Keywords

    Robots; Labor markets; Latin America;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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