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Automatic Reaction – What Happens to Workers at Firms that Automate?

Wiljan van den Berge ()

CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: We provide the first estimate of the impacts of automation on individual workers by combining Dutch micro-data with a direct measure of automation expenditures covering firms in all private non-financial industries over 2000-2016. Using an event study differences-indifferences design, we find that automation at the firm increases the probability of workers separating from their employers and decreases days worked, leading to a 5-year cumulative wage income loss of about 8% of one year’s earnings for incumbent workers.

JEL-codes: J23 J31 J62 J63 O33 (search for similar items in EconPapers)
Date: 2019-02
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