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Automation, Firm Size and Skill Groups

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  • Julian Tiedtke

Abstract

This paper examines the impact of automation investments on employment dynamics and workforce composition using administrative data from Portugal. I exploit the lumpiness of automation imports in a difference-in-differences event study design. My results show that automation creates jobs in small firms but leads to job losses in larger ones. This pattern holds across a wide range of firm types, industries and types of automation technologies. Most importantly, automation favors low-educated, routine-blue-collar workers in routine-intensive jobs over highly skilled workers like STEM professionals. These findings challenge the view of automation as inherently skill-biased

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  • Julian Tiedtke, 2025. "Automation, Firm Size and Skill Groups," LEM Papers Series 2025/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2025/09
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    Keywords

    Automation; Employment; Firm heterogeneity; Deskilling;
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