IDEAS home Printed from https://ideas.repec.org/p/ibt/wpaper/wp062024.html
   My bibliography  Save this paper

The effects of automation on workers’ wages

Author

Listed:
  • Karol MadoÅ„

Abstract

This study examines the impact of automation on workers' wages across 20 European countries between 2010–2018. Overall, it identifies a net positive effect of robot adoption on average wages at the sectoral level, especially pronounced among routine manual and nonroutine manual occupations. Importantly, these effects differ between countries- workers in Eastern European countries benefit twice as much from automation as their Western European counterparts. In Western European countries, higher average wages are associated with a decreasing share of routine workers. Results are robust to the exclusion of different capital measures, a battery of fixed effects, a change of instrument and an alternative measure of wages.

Suggested Citation

  • Karol MadoÅ„, 2025. "The effects of automation on workers’ wages," IBS Working Papers 06/2024, Instytut Badan Strukturalnych.
    • Handle: RePEc:ibt:wpaper:wp062024
    as

    Download full text from publisher

    File URL: https://ibs.org.pl/wp-content/uploads/2025/03/Madon_the_effects_of_automation_on_worker_wages.pdf
    File Function: English Version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    automation; job tasks; wages; technological change; Europe;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibt:wpaper:wp062024. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: IBS (email available below). General contact details of provider: https://edirc.repec.org/data/ibswapl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.