Automation and income inequality in Europe

Karina Doorley, Jan Gromadzki, Piotr Lewandowski, Dora Tuda and Philippe Van Kerm

No 06/2023, IBS Working Papers from Instytut Badan Strukturalnych

Abstract: We study the effects of robot penetration on household income inequality in 14 European countries between 2006–2018, a period marked by the rapid adoption of industrial robots. We establish that, similarly to the United States, automation reduced relative hourly wages and employment of directly affected demographic groups in Europe. We then use the estimated wage and employment shocks as input to the EUROMOD microsimulation model to assess how robot-driven shocks affected household income inequality. Automation had very small effects on income inequality. Household risk-sharing and tax and welfare policies largely absorbed wage and employment shocks caused by automation.

Keywords: robots; automation; tasks; income inequality; wage inequality; microsimulation (search for similar items in EconPapers)
JEL-codes: J23 J24 O33 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2023-10
New Economics Papers: this item is included in nep-eur, nep-lma and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Automation and income inequality in Europe (2024)
Working Paper: Automation and income inequality in Europe (2023)
Working Paper: Automation and Income Inequality in Europe (2023)
Working Paper: Automation and Income Inequality in Europe (2023)
Working Paper: Automation and Income Inequality in Europe (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:ibt:wpaper:wp062023

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