Unions and Automation Risk: Who Bears the Cost of Automation?

Lee Changkeun () and Kim Olivia Hye ()
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Lee Changkeun: KDI School of Public Policy and Management, 263 Namsejong-ro, Seoul 30149, South Korea
Kim Olivia Hye: Economics, Seoul National University College of Social Sciences, 220-526, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, South Korea

The B.E. Journal of Economic Analysis & Policy, 2023, vol. 23, issue 3, 843-851

Abstract: Automation creates winners and losers. By examining establishment-level panel data, we explore how labour unions affect labor adjustment associated with automation. Although automation can increase new hires of junior and unskilled production workers, the presence of labour unions neutralizes these effects. The results suggest that labour unions have incentives to protect incumbent workers negatively affected by automation.

Keywords: robotics; automation; job; union (search for similar items in EconPapers)
JEL-codes: J51 O32 O33 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1515/bejeap-2022-0446

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