Automation, firms, and workers: Evidence from South Africa

Michael Kilumelume, Justice Tei Mensah, Aimable Nsabimana and Kunal Sen

No wp-2025-61, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We examine the effects of automation on firm performance and the labour market in the context of an emerging economy. To do this, we leverage unique administrative data on the universe of manufacturing firms in South Africa to identify causal evidence of firm-level outcomes from automation adoption. In the event-study design, we derive direct effects of automation on automating firms, the spillover effects on non-automating firms, and employment within the industry and location.

Keywords: Firms; Automation; Labour market; South Africa (search for similar items in EconPapers)
Date: 2025
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