Robots and Non-Participation: Evidence and Lessons from the US and Europe

Giuseppe Di Giacomo and Benjamin Lerch

No 83, EconPol Policy Brief from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: Key MessagesBetween 1993 and 2014, each additional industrial robot in the US displaced four workers from the labor forceAutomation hits workers with lower levels of education the hardest. While younger cohorts upskill, older workers exit the workforce permanentlyIn heavily automated US regions, exits stem from early retirement or disability insurance uptakeRobots also affect European labor markets, with job losses occurring in non-adopting firms that lose competitivenessTo mitigate AI and automation risks, policymakers must fund targeted upskilling and coordinate social safety net programs

Date: 2026
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