Robotic capital - skill complementarity

Michele Battisti, Massimo Del Gatto, Antonio Francesco Gravina and Christopher F. Parmeter

Macroeconomic Dynamics, 2025, vol. 29, -

Abstract: Relying upon an original (country-sector-year) measure of robotic capital ( $RK$ ), we investigate the degree of complementarity/substitutability between robots and workers at different skill levels. We employ nonparametric methods to estimate elasticity of substitution patterns between $RK$ and skilled/unskilled labor over the period 1995–2009. We show that: i) on average, $RK$ exhibits less substitutability with skilled workers compared to unskilled workers, indicating a phenomenon of “RK-Skill complementarity”. This pattern holds in a global context characterized by significant heterogeneity; ii) the dynamic of “RK-Skill complementarity” has increased since the early 2000s; iii) the observed strengthening is more prominent in OECD countries, as opposed to non-OECD countries, and in the Manufacturing sector, compared to non-Manufacturing industries.

Date: 2025
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