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The Impact of Robots on Labour Market Transitions in Europe

Author

Listed:
  • Bachmann, Ronald

    (RWI)

  • Gonschor, Myrielle

    (RWI)

  • Lewandowski, Piotr

    (Institute for Structural Research (IBS))

  • Madoń, Karol

    (Institute for Structural Research (IBS))

Abstract

We study the effects of robot exposure on worker flows in 16 European countries between 1998-2017. Overall, we find small negative effects on job separations and small positive effects on job findings. Labour costs are shown to be a major driver of cross-country differences: the effects of robot exposure are generally larger in absolute terms in countries with low or average levels of labour costs than in countries with high levels of labour costs. These effects are particularly pronounced for workers in occupations intensive in routine manual or routine cognitive tasks, but are insignificant in occupations intensive in non-routine cognitive tasks. For young and old workers in countries with low levels of labour costs, robot exposure had a beneficial effect on transitions. Our results imply that robot adoption increased employment and reduced unemployment most in the European countries with low or average levels of labour costs.

Suggested Citation

  • Bachmann, Ronald & Gonschor, Myrielle & Lewandowski, Piotr & Madoń, Karol, 2022. "The Impact of Robots on Labour Market Transitions in Europe," IZA Discussion Papers 15303, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15303
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    Cited by:

    1. Franco, Chiara & Suppressa, Francesco, 2025. "Robot, trade and employment: Unravelling the relationship within the European context," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 407-422.
    2. Qin, Meng & Wan, Yue & Dou, Junyi & Su, Chi Wei, 2024. "Artificial Intelligence: Intensifying or mitigating unemployment?," Technology in Society, Elsevier, vol. 79(C).
    3. Albinowski, Maciej & Lewandowski, Piotr, 2024. "The impact of ICT and robots on labour market outcomes of demographic groups in Europe," Labour Economics, Elsevier, vol. 87(C).
    4. Anna Matysiak & Daniela Bellani & Honorata Bogusz, 2023. "Industrial Robots and Regional Fertility in European Countries," European Journal of Population, Springer;European Association for Population Studies, vol. 39(1), pages 1-36, December.
    5. Dou, Jie & Chen, Dongjing & Zhang, Yuchen, 2025. "Towards energy transition: Accessing the significance of artificial intelligence in ESG performance," Energy Economics, Elsevier, vol. 146(C).
    6. Fabien Petit & Florencia Jaccoud & Tommaso Ciarli, 2023. "Heterogeneous Adjustments of Labor Markets to Automation Technologies," CESifo Working Paper Series 10237, CESifo.
    7. Giorgio Gnecco & Sara Landi & Massimo Riccaboni, 2023. "Can Machines Learn Creativity Needs? An Approach Based on Matrix Completion," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(3), pages 1111-1151, November.
    8. Anna Matysiak & Daniela Bellani & Honorata Bogusz, 2022. "Industrial robots and fertility in European countries," Working Papers 2022-26, Faculty of Economic Sciences, University of Warsaw.
    9. Adina-Maria Voda, 2025. "Comparative Analysis of the Relationship Between Workforce Demand and Digitalization at Company Level in Romania and Germany," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 98-115.

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    Keywords

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    JEL classification:

    • 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
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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