The effects of automation on workers’ wages

Karol Madoń
Authors registered in the RePEc Author Service: Karol Madoń

No 06/2025, IBS Working Papers from Instytut Badan Strukturalnych

Abstract: This study examines the impact of automation on workers' wages across 20 European countries between 2010–2018. Overall, it identifies a net positive effect of robot adoption on average wages at the sectoral level, especially pronounced among routine manual and nonroutine manual occupations. Importantly, these effects differ between countries- workers in Eastern European countries benefit twice as much from automation as their Western European counterparts. In Western European countries, higher average wages are associated with a decreasing share of routine workers. Results are robust to the exclusion of different capital measures, a battery of fixed effects, a change of instrument and an alternative measure of wages.

Keywords: automation; job tasks; wages; technological change; Europe (search for similar items in EconPapers)
JEL-codes: E24 J30 O33 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2025-03
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Persistent link: https://EconPapers.repec.org/RePEc:ibt:wpaper:wp062025

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