Automation and income inequality in Europe

Karina Doorley, Jan Gromadzki, Piotr Lewandowski, Dora Tuda and Philippe Van Kerm

No 2023-11, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: We study the effects of robot penetration on household income inequality in 14 European countries between 2006–2018, a period marked by the rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more exposed demographic groups, similarly to the results for the United States. Using robot-driven wage and employment shocks as input to the EUROMOD microsimulation model, we find that automation had minor effects on income inequality. Household labour income diversification and tax and welfare policies largely absorbed labour market shocks caused by automation. Transfers played a key role in cushioning the transmission of these shocks to household incomes.

Keywords: robots; automation; tasks; income inequality; wage inequality; microsimulation (search for similar items in EconPapers)
JEL-codes: J23 J24 O33 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2023-12
New Economics Papers: this item is included in nep-eec, nep-eur and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Automation and income inequality in Europe (2024)
Working Paper: Automation and income inequality in Europe (2023)
Working Paper: Automation and Income Inequality in Europe (2023)
Working Paper: Automation and Income Inequality in Europe (2023)
Working Paper: Automation and Income Inequality in Europe (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:irs:cepswp:2023-11

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