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Robots are not always bad for employment and wages

Author

Listed:
  • Tiago Neves Sequeira

    (University of Coimbra, CeBER- Centre for Business and Economics Research, Faculty of Economics)

  • Susana Garrido

    (University of Coimbra, Centre for Business and Economics,CeBER, Faculty of Economics)

  • Marcelo Serra Santos

    (CeBER)

Abstract

We reassess the impact that robotization has on wages and employment, using a database on US commuting zones from 1990 to 2007. Using an argument based on the transitional dynamics we show that the negative displacement effects of robotization can be surpassed by productivity and reallocation effects, leading to positive effects on employment after a certain level of penetration in industry. In fact, we confirm this effect through regressions that are subject to different robustness checks. Previous evidence according to which robotization always decreases employment and wages are thus not confirmed.

Suggested Citation

  • Tiago Neves Sequeira & Susana Garrido & Marcelo Serra Santos, 2020. "Robots are not always bad for employment and wages," CeBER Working Papers 2020-16, Centre for Business and Economics Research (CeBER), University of Coimbra.
    • Handle: RePEc:gmf:papers:2020-16
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    Cited by:

    1. Bloom, David E. & Prettner, Klaus & Saadaoui, Jamel & Veruete, Mario, 2025. "Artificial intelligence and the skill premium," Finance Research Letters, Elsevier, vol. 81(C).
    2. Dario Guarascio & Alessandro Piccirillo & Jelena Reljic, 2024. "Will robot replace workers? Assessing the impact of robots on employment and wages with meta-analysis," LEM Papers Series 2024/03, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    3. Claudio Costanzo, 2022. "Robots, Jobs, and Optimal Fertility Timing," Working Papers ECARES 2022-36, ULB -- Universite Libre de Bruxelles.
    4. Qin, Meng & Wan, Yue & Dou, Junyi & Su, Chi Wei, 2024. "Artificial Intelligence: Intensifying or mitigating unemployment?," Technology in Society, Elsevier, vol. 79(C).
    5. Liu, Yang & Zhao, Congyu & Kong, Zhaoyang & Taghizadeh-Hesary, Farhad, 2025. "Pathways to stable economic policy: The role of industrial robotics and energy transition," Renewable Energy, Elsevier, vol. 244(C).
    6. Zhang, Xinchun & Sun, Murong & Liu, Jianxu & Xu, Aijia, 2024. "The nexus between industrial robot and employment in China: The effects of technology substitution and technology creation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    7. Xiekui Zhang & Hongfei Zhu, 2023. "The Impact of Industrial Intelligence on Carbon Emissions: Evidence from the Three Largest Economies," Sustainability, MDPI, vol. 15(7), pages 1-15, April.
    8. Jurkat, Anne & Klump, Rainer & Schneider, Florian, 2023. "Robots and Wages: A Meta-Analysis," EconStor Preprints 274156, ZBW - Leibniz Information Centre for Economics.
    9. Li, Chao & Lao, Wenyu & Li, Xiang & Zhang, Yuhan, 2024. "Automated workforce, financial precarities and family consumption: The importance of demand-side policies under the background of automation applications," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1287-1308.
    10. Li, Chao & Zhang, Yuhan & Li, Xiang & Hao, Yanwei, 2024. "Artificial intelligence, household financial fragility and energy resources consumption: Impacts of digital disruption from a demand-based perspective," Resources Policy, Elsevier, vol. 88(C).
    11. Hui Liang & Jingbo Fan & Yunhan Wang, 2025. "Artificial Intelligence, Technological Innovation, and Employment Transformation for Sustainable Development: Evidence from China," Sustainability, MDPI, vol. 17(9), pages 1-28, April.
    12. Bo Chen & Dong Tan, 2023. "Industrial Robots and the Employment Quality of Migrant Workers in the Manufacturing Industry," Sustainability, MDPI, vol. 15(10), pages 1-21, May.
    13. Filippi, Emilia & Bannò, Mariasole & Trento, Sandro, 2023. "Automation technologies and their impact on employment: A review, synthesis and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 191(C).

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    Keywords

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    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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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