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Anatomy of Automation : CNC Machines and Industrial Robots in UK Manufacturing, 2005-2023

Author

Listed:
  • Baksy, Aniket

    (University of Melbourne)

  • Chandler, Daniel

    (LSE)

  • Lambert, Peter John

    (LSE & University of Warwick)

Abstract

Using a novel proprietary survey of UK manufacturing sites, we study the impact on employment of arguably the two most important industrial automation technologies of the past fifty years: computer numerical control (CNC) machine tools and industrial robots. First, we document the growing prevalence of both technologies across a wide range of industries between 2005 and 2023. Second, we use a local-projection differencein-difference design to show that plants that adopt these technologies for the first time increase their employment by 6% to 9% compared to non-adopting plants in the same industry. Third, we find that for both technologies, automation is associated with an increase in employment among industry-competitor sites, and a positive overall impact on industry-level employment.

Suggested Citation

  • Baksy, Aniket & Chandler, Daniel & Lambert, Peter John, 2025. "Anatomy of Automation : CNC Machines and Industrial Robots in UK Manufacturing, 2005-2023," The Warwick Economics Research Paper Series (TWERPS) 1585, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1585
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - 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
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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