Factory Automation, Labor Demand, and Local Labor Market

Daiji Kawaguchi (), Tetsuji Okazaki and Xuanli Zhu
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Daiji Kawaguchi: University of Tokyo
Tetsuji Okazaki: CEPR
Xuanli Zhu: Keio University

No 16885, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study examines the impact of a technological change on employment and wages, focusing on the adoption of power looms in the silk-weaving industry. Exploiting plant-level panel data from 20th century Japan, we demonstrate that at the plant level, the power loom adaption increased the employment and wages of adult male workers, who likely conducted engineering tasks, and moderately increased wages of female adults, who were simultaneously displaced and reinstated to more non-routine tasks. The wage hike of adult workers induced the exit of less efficient plants and decreased female adult employment by 28 percent at the area level.

Keywords: electrification; automation; employment; wage; second industrial revolution (search for similar items in EconPapers)
JEL-codes: J23 J24 J31 N35 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2024-03
New Economics Papers: this item is included in nep-his, nep-lma and nep-tid
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