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Industrial Automation and Jobs in an Emerging Economy: Evidence from Viet Nam

Author

Listed:
  • Arias, Omar

    (World Bank)

  • Cesar, Andres

    (CEDLAS-UNLP)

  • Fukuzawa, Daisuke

    (World Bank)

  • Le, Duong

    (World Bank)

Abstract

We examine the labor market effects of industrial robot adoption in Viet Nam. Using differences between districts in their initial industrial structure and exposure to global robotization trends, we find that robot adoption between 2014 and 2020 increased employment, wages, and the inflow of skilled workers. More exposed districts also experienced faster growth in value added, labor productivity, and trade flows. Employment and wage gains were concentrated among middle and high-skilled workers, while low-skilled workers were driven into informal employment or out-migration. We also find positive spillovers to neighboring districts, consistent with production linkages and higher demand for non-tradable goods.

Suggested Citation

  • Arias, Omar & Cesar, Andres & Fukuzawa, Daisuke & Le, Duong, 2026. "Industrial Automation and Jobs in an Emerging Economy: Evidence from Viet Nam," IZA Discussion Papers 18845, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18845
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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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • 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
    • 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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