Industrial Automation and Jobs in an Emerging Economy: Evidence from Viet Nam

Omar Arias (), Andres Cesar (), Daisuke Fukuzawa () and Duong Le ()
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Omar Arias: World Bank
Andres Cesar: CEDLAS-UNLP
Daisuke Fukuzawa: World Bank
Duong Le: World Bank

No 18845, IZA Discussion Papers from IZA Network @ LISER

Abstract: We examine the labor market effects of industrial robot adoption in Viet Nam. Using differences between districts in their initial industrial structure and exposure to global robotization trends, we find that robot adoption between 2014 and 2020 increased employment, wages, and the inflow of skilled workers. More exposed districts also experienced faster growth in value added, labor productivity, and trade flows. Employment and wage gains were concentrated among middle and high-skilled workers, while low-skilled workers were driven into informal employment or out-migration. We also find positive spillovers to neighboring districts, consistent with production linkages and higher demand for non-tradable goods.

Keywords: Industrial Robots; Local Labor Markets; Wages; Informality; Migration; Export-led Growth; Viet Nam (search for similar items in EconPapers)
JEL-codes: J23 J24 J31 O12 O14 O17 O33 (search for similar items in EconPapers)
Date: 2026-08
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