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The impact of Robots in Latin America: Evidence from Local Labor Markets

Author

Listed:
  • Irene Brambilla

    (CEDLAS-IIE-FCE-UNLP)

  • Andrés César

    (CEDLAS-IIE-FCE-UNLP)

  • Guillermo Falcone

    (CEDLAS-IIE-FCE-UNLP & CONICET)

  • Leonardo Gasparini

    (CEDLAS-IIE-FCE-UNLP & CONICET)

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.

Suggested Citation

  • Irene Brambilla & Andrés César & Guillermo Falcone & Leonardo Gasparini, 2023. "The impact of Robots in Latin America: Evidence from Local Labor Markets," CEDLAS, Working Papers 0312, CEDLAS, Universidad Nacional de La Plata.
    • Handle: RePEc:dls:wpaper:0312
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    References listed on IDEAS

    as
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    Cited by:

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    3. Guzel Salimova & Alisa Ableeva & Rasul Gusmanov & Gulnara Nigmatullina & Tatyana Lubova, 2024. "Multidimensional Assessment of the Labour Market in the Regions of the Russian Federation," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(2), pages 547-569, June.

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    More about this item

    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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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