Robotization, employment, and income: regional asymmetries and long-run policies in the Euro area

Enzo Valentini, Fabiano Compagnucci (), Mauro Gallegati and Andrea Gentili
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Fabiano Compagnucci: Social Sciences, Gran Sasso Science Institute (GSSI)

Journal of Evolutionary Economics, 2023, vol. 33, issue 3, No 4, 737-771

Abstract: Abstract This work correlates the impact of robotization on employment and households’ income at the regional scale with the level of investment in R&D and education policies. This kind of policy, by raising the qualitative and quantitative levels of human capital, contributes to improving the complementarity effect between humans and robots, thus mitigating the substitution effect. To this end, we compute the Adjusted Penetration of Robots (APR) (a metric used to measure the extent to which robots are being used in a particular industry or sector) at the sectoral level, combining the International Federation of Robotics database for the stock of robots, EUROSTAT Regional database, and the STructural ANalysis database on 150 NUTS-2 regions of the Euro area. We then perform a spatial stacked-panel analysis on the investment in R&D and education level. Results supports the idea that regions that invest more in R&D and have higher levels of human capital can turn the risk of robotization into an increase in both income and "quantity of work," by enhancing complementarity between robots and the labor force. On the contrary, regions investing less in R&D and having lower levels of human capital may suffer a reduction in households’ disposable income.

Keywords: Robotization; Employment; Households’ income; R&D policies; Adjusted Penetration of Robots (APR); Education policies; Regional inequalities (search for similar items in EconPapers)
JEL-codes: D02 J24 O33 R23 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s00191-023-00819-5

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