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Technology adoption and jobs: The effects of self-service kiosks in restaurants on labor outcomes

Chungeun Yoon

Technology in Society, 2023, vol. 74, issue C

Abstract: This study explores how technology adoption affects labor. I investigate the effect of restaurants' adoption of self-service kiosks on labor outcomes, using survey data from Korea. I find that businesses’ adoption of self-service kiosks had little impact on their number of full-time or part-time workers. However, restaurants with a self-service kiosk decreased both the wages of their part-time workers and the number of unpaid family members they employed. The results are driven by franchise restaurants. Independently owned restaurants that adopted kiosks increased the wages of their full-time workers. These findings provide support for the efficiency wage theory as well as the skill-biased technological change theory. The results suggest that when businesses adopt new technologies, these technologies do not replace unskilled labor, but rather raise the relative wages of skilled workers.

Keywords: Technology adoption; Kiosk; Employment; Skill-biased technological change; Efficiency wages (search for similar items in EconPapers)
JEL-codes: J24 J31 O33 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:74:y:2023:i:c:s0160791x23001410

DOI: 10.1016/j.techsoc.2023.102336

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