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The Impact of Fear of Automation

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  • Rauh, Christopher
  • Golin, Marta

Abstract

In this paper, we establish a causal effect of workers' perceived probability of losing one's job due to automation on worker's policy preferences and workplace intentions. In a representative sample of the US workforce, we elicit the perceived fear of losing one's job to robots or artificial intelligence. We document a strong relationship between fear of automation and intentions to join a union, retrain and switch occupations, preferences for higher taxation, higher government handouts, populist attitudes, and voting intentions. We then show a causal effect of providing information about occupation-specific job loss probabilities on preferred levels of taxation and handouts. In contrast, the information treatment does not affect workers' intentions to self-insure by retraining or switching occupations, but it increases workers' self-reported likelihood of joining a union to seek more job protection. The treatment effects are mostly driven by workers who are informed about larger job loss probabilities than they perceived.

Suggested Citation

  • Rauh, Christopher & Golin, Marta, 2023. "The Impact of Fear of Automation," CEPR Discussion Papers 17816, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:17816
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    More about this item

    Keywords

    Automation; Information treatment; Political attitudes; Political preferences; Redistribution; Inequality; Populism; Unions;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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