Effects of Automation on Mexican Automotive Employment: 2013–2022

Vladimir Márquez Stone () and Seyka Verónica Sandoval Cabrera ()
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Vladimir Márquez Stone: National Autonomous University of Mexico
Seyka Verónica Sandoval Cabrera: National Autonomous University of Mexico

The Indian Journal of Labour Economics, 2024, vol. 67, issue 3, No 3, 680 pages

Abstract: Abstract This article analyses the empirical relationship between the introduction of automation technology—industrial robots—and the employment and wages of workers in the Mexican automotive industry from 2013 to 2022. Drawing on contemporary debates surrounding automation and technological unemployment, we describe the Mexican labour market’s conditions in the context of trade openness, the technological capabilities of the Mexican automotive industry, and the implementation of industrial robots. We examine this relationship using a random effects panel data model across 14 Mexican states, constructed with values from the Monthly Survey of the Manufacturing Industry (EMIM), the Mexican Ministry of Economy (SE), and the International Federation of Robotics. Our results suggest that adopting industrial robots correlates positively with the employment and salaries of automobile sector workers in the study period. We discuss the implications of changes in jobs and wages in the Mexican automotive industry, highlighting the consequences of technological change.

Keywords: Automation; Industrial robot; Manufacturing; Employment; Wages; Automotive industry (search for similar items in EconPapers)
JEL-codes: E24 J21 O14 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s41027-024-00505-5

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