Long-Run Effects of Technological Change: The Impact of Automation and Robots on Intergenerational Mobility

Fredrik Heyman and Martin Olsson

No 1451, Working Paper Series from Research Institute of Industrial Economics

Abstract: This paper examines whether advancements in automation and robotics have affected intergenerational income mobility. Using detailed data on all individuals and firms in Sweden from 1985 to 2017, we analyze how parental exposure to robots at the occupational level and the heterogeneous adoption of robots across industries influence children’s outcomes in adulthood. Our results show that parents’ occupational exposure to robots is associated with lower income mobility for their children. Taking into account exposure at the occupational and industry levels, we find that the negative impact on intergenerational mobility originates from industries with a relatively large increase in robot adoption. Our results also indicate that children with exposed parents are worse off with regard to several labor market and family-related outcomes, including higher risks of unemployment and being out of the labor force. Overall, our paper reveals a new determinant that shapes intergenerational mobility and highlights that advancements in automation and robotics can have long-lasting effects on society.

Keywords: Intergenerational Mobility; Automation; Robots; Matched Employer-Employee Data (search for similar items in EconPapers)
JEL-codes: J24 J31 J62 O33 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2022-12-19, Revised 2023-06-29
New Economics Papers: this item is included in nep-eur, nep-lma, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:1451

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