Automation, Firm Size and Skill Groups

Julian Tiedtke

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: This paper examines the impact of automation investments on employment dynamics and workforce composition using administrative data from Portugal. I exploit the lumpiness of automation imports in a difference-in-differences event study design. My results show that automation creates jobs in small firms but leads to job losses in larger ones. This pattern holds across a wide range of firm types, industries and types of automation technologies. Most importantly, automation favors low-educated, routine-blue-collar workers in routine-intensive jobs over highly skilled workers like STEM professionals. These findings challenge the view of automation as inherently skill-biased

Keywords: Automation; Employment; Firm heterogeneity; Deskilling (search for similar items in EconPapers)
Date: 2025-04-03
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Persistent link: https://EconPapers.repec.org/RePEc:ssa:lemwps:2025/09

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