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Robots and Non-Participation: Evidence and Lessons from the US and Europe

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  • Giuseppe Di Giacomo
  • Benjamin Lerch

Abstract

Key MessagesBetween 1993 and 2014, each additional industrial robot in the US displaced four workers from the labor forceAutomation hits workers with lower levels of education the hardest. While younger cohorts upskill, older workers exit the workforce permanentlyIn heavily automated US regions, exits stem from early retirement or disability insurance uptakeRobots also affect European labor markets, with job losses occurring in non-adopting firms that lose competitivenessTo mitigate AI and automation risks, policymakers must fund targeted upskilling and coordinate social safety net programs

Suggested Citation

  • Giuseppe Di Giacomo & Benjamin Lerch, 2026. "Robots and Non-Participation: Evidence and Lessons from the US and Europe," EconPol Policy Brief 83, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:econpb:_83
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    File URL: https://www.ifo.de/DocDL/EconPol_PolicyBrief_83_Robots.pdf
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    References listed on IDEAS

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