Organized Labor Versus Robots? Co-Determination in Times of Automation

Sebastian Findeisen, Wolfgang Dauth and Oliver Schlenker

EconPol Forum, 2025, vol. 26, issue 04, 76-81

Abstract: Key Messages:Works councils reduce job separations during automation events, especially when firms can easily replace incumbent workersAmong workers who are most prone to automation, works councils prevent wage and earnings losses when firms adopt robotsWorks councils prevent earnings inequality through automation to rise by limiting earnings gains for non-production workersPlants with works councils accompany robot adoption with more training and experience higher productivity levels thereafterThese results suggest that labor market institutions can benefit both incumbent workers and firms

Date: 2025
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