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Automation Technologies and Employment at Risk: The Case of Mexico

Alfonso Cebreros, Aldo Heffner-Rodríguez, René Livas and Daniela Puggioni

No 2020-04, Working Papers from Banco de México

Abstract: Based on the methodology proposed by Frey and Osborne (2017), we use their estimates for the probability of automation of occupations together with household survey data on the occupational distribution of employment to provide a risk assessment for the threat that automation may pose to the Mexican labor market. We find that almost two thirds of total employment is at high risk of automation; slightly more than half if we only consider employment in the formal sector. We argue that, while these estimates provide a useful benchmark to start thinking about the impact that automation may have on the labor market, they should be interpreted with care as they are solely based on the technical feasibility to automate and do not reflect the economic incentives, or other factors such as the accumulation of human capital through education, to adopt automation technologies.

Keywords: Automation; Human capital and occupational choice; Labor demand; Organization of production; Robots; Technological change. (search for similar items in EconPapers)
JEL-codes: E24 E26 F16 J21 J23 J24 J62 L23 L86 O33 O38 N16 (search for similar items in EconPapers)
Date: 2020-06
New Economics Papers: this item is included in nep-mac
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