Automation and Labor Demand: The Role of Different Types of Robotic Applications

Martin Lábaj and Matej Vitalos
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Matej Vitalos: University of Economics in Bratislava, Slovakia; Supreme Audit Office of the Slovak Republic

Czech Journal of Economics and Finance (Finance a uver), 2021, vol. 71, issue 3, 220-244

Abstract: Recent literature documents significant heterogeneity in the strength of automation and the creation of new tasks across advanced countries. To address the observed cross-country heterogeneity, this paper provides detailed evidence on the role played by the adoption of industrial robots by application. We document that some robots played a more important role in the replacement of workers than others did. After controlling for potential confounding factors such as ICT, manufacturing share, and trade unions, we found significant evidence for a relationship between displacement and industrial robots installed for welding, soldering, and dispensing. The evidence for other industrial robots was mixed. The cross-country heterogeneity in the reinstatement effect remains unexplained and calls for further research.

Keywords: automation; technological change; displacement; reinstatement; labor demand (search for similar items in EconPapers)
JEL-codes: J23 O33 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:71:y:2021:i:3:p:220-244

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