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

Gustavo de Souza and Haishi Li (haishili@hku.hk)
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Haishi Li: https://www.hkubs.hku.hk/people/haishi-li/

No WP 2023-42, Working Paper Series from Federal Reserve Bank of Chicago

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-augmenting (search for similar items in EconPapers)
JEL-codes: J23 J24 (search for similar items in EconPapers)
Pages: 88
Date: 2023-11-30
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Citations: View citations in EconPapers (1)

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