Automation and Local Labour Markets: Impact of Immigrant Mobility

Anand Chopra and Ronit Mukherji

No 9, Working Papers from University of Liverpool, Department of Economics

Abstract: This paper illustrates the role of low-skilled immigrants' location choice as a channel through which local labour markets adjust to automation. We employ a shift-share instrumental variable approach to demonstrate that low-skilled immigrants are more mobile than low-skilled native born in response to robot exposure. Low-skilled immigrants are less likely to enter and more likely to exit from highly robot-exposed regions. Immigrants' location decisions attenuate wage losses due to robot exposure for low-skilled natives. Low-skilled native workers experience a 0.07 percentage point smaller decline in wages comparing commuting zones at the 50th and 25th percentiles of low-skilled immigrant shares.

Keywords: Automation; Geographic labour mobility; Immigrants; Technology (search for similar items in EconPapers)
JEL-codes: J15 J23 J31 J61 O33 R23 (search for similar items in EconPapers)
Pages: 70 pages
Date: 2024-06-25
New Economics Papers: this item is included in nep-int, nep-inv, nep-lma, nep-mig, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:liv:livedp:202409

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