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Automation and Human Capital Investment

Author

Listed:
  • Rony, Sidharth

    (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn)

Abstract

Technological change has an ambiguous impact on labour market by creating demand for some skills and reducing demand of some others. Hence the relationship of demand for skills and the need for training is an empirical question. In this paper, I investigate association between types of technological change and decisions. I categorise several measures of automation on the basis of tasks (done at individual or occupation level) and technology (Software, Robot, AI) and compare their relationship with human capital investment. I find that the correlation between automation and training varies depending on the automation measure used, showing a decline with both individual- and occupation-level automation measures. However when relying on technology based measures of automation, workers exposed to older technologies (Robot, Software) receive less training with automation, while workers exposed to newer technologies (AI) receive more training with automation. The findings are consistent across workers of different age groups and skill levels.

Suggested Citation

  • Rony, Sidharth, 2026. "Automation and Human Capital Investment," MERIT Working Papers 009, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2026009
    DOI: 10.53330/XOGM3113
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    References listed on IDEAS

    as
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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
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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