Automation, globalisation and relative wages: An empirical analysis of winners and losers
Antonio Francesco Gravina () and
Neil Foster-McGregor ()
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Antonio Francesco Gravina: Department of Law, University of Palermo, Italy and Department of Economics, University of Messina, Italy
No 2020-040, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)
In this paper, we study the effects of advances in robotics, tangible and intangible technologies, and trade openness and global value chain participation on relative wages, relying upon the skill-biased technical change and polarisation of the labour force frameworks. The empirical analysis is carried out using a panel dataset comprising 18 mostly advanced European economies and 6 industries, with annual observations spanning the period 2008-2017. Our findings suggest that intangible technologies - especially software & databases - significantly increase the wage premium for high relative to lower-skilled labour. Additionally, the tangible component of ICT primarily benefits lower-skilled workers, whereas R&D and trade openness produce polarising effects. The results are robust to the inclusion of sector-specific labour market regulations variables in the models.
Keywords: Robots; Intangibles; Automation; ICT; Globalisation; Wage Differentials (search for similar items in EconPapers)
JEL-codes: C01 F16 F63 J31 O11 O33 O43 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ict, nep-int, nep-lma and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2020040
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