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Racing With or Against the Machine? Evidence from Europe

Terry Gregory (), Anna Salomons and Ulrich Zierahn

Annual Conference 2016 (Augsburg): Demographic Change from Verein für Socialpolitik / German Economic Association

Abstract: A fast-growing literature shows that technological change is biased towards routine tasks, changing the structures of employment and wages in developed economies. This paper is the first to estimate the absolute rather than relative employment effects of routine-biased technological change (RBTC) for Europe as a whole and at the level of 238 European regions. We develop and estimate a task model of regional labor demand in tradable and non-tradable industries, building on Goos et al. (2014), and distinguish the main channels through which technological change affects labor demand. These channels include the direct substitution of capital for labor in task production, but also the compensating effects operating through product demand and local demand spillovers. We empirically estimate the contributions of the channels in our model to analyze how RBTC affects both aggregate and regional employment. Our results indicate that RBTC has on net created more than 11 million jobs across 27 European countries over 1999-2010, comprising half of total employment growth, and can account for some 40 percent of the observed European regional variation in employment growth over this period.

JEL-codes: E24 J23 R23 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-eec, nep-mac and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed

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https://www.econstor.eu/bitstream/10419/145843/1/VfS_2016_pid_6918.pdf (application/pdf)

Related works:
Working Paper: Racing With or Against the Machine? Evidence from Europe (2019) Downloads
Working Paper: Racing With or Against the Machine? Evidence from Europe (2018) Downloads
Working Paper: Racing With or Against the Machine?: Evidence from Europe (2018) Downloads
Working Paper: Racing With or Against the Machine? Evidence from Europe (2016) Downloads
Working Paper: Racing with or against the machine? Evidence from Europe (2016) Downloads
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