Robots, Tools, and Jobs: Evidence from Brazilian Labor Markets

Gustavo de Souza and Haishi Li

No 10813, CESifo Working Paper Series from CESifo

Abstract: What is the effect of robots and tools on employment and inequality? Using natural language processing and an instrumental variable approach, we discover that robots have led to a sizable decrease in the employment and wages of low-skill workers in operational occupations. However, tools - machines that complement labor – have led to an equally large reinstatement of these workers, increasing their employment and wages. Using a quantitative model, we find that the lower prices of robots and tools over the last 20 years have reduced inequality and increased welfare without a significant effect on employment.

Keywords: robots; automation; tools; labor-saving; labor-augmenting (search for similar items in EconPapers)
JEL-codes: J23 J24 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-lma and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10813

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