Factory Automation, Labor Demand, and Local Labor Market

Daiji Kawaguchi, Tetsuji Okazaki and Xuanli Zhu
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Daiji Kawaguchi: Faculty of Economics, The University of Tokyo
Tetsuji Okazaki: Faculty of Economics, The University of Tokyo
Xuanli Zhu: Faculty of Economics, Keio University

No CIRJE-F-1225, CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo

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.

Pages: 30 pages
Date: 2024-03
New Economics Papers: this item is included in nep-his
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Persistent link: https://EconPapers.repec.org/RePEc:tky:fseres:2024cf1225

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