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From Blue- to Steel-Collar Jobs: The Decline in Employment Gaps?

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  • Benjamin Lerch

Abstract

I investigate how the introduction of industrial robots is shaping the demographic composition of the US labor force between 1993 and 2014. I find that robots decreased employment of men and women by 3.7 and 1.6 percentage points, contributing to the secular decline in the gender employment gap, and that they decreased employment among Whites and non-Whites by 1.8 and 4.5 percentage points, widening the race/ethnicity employment gap. These effects follow from the persistent occupational segregation in the labor market. Although robots are primarily used in manufacturing, their adverse effects spill over to local service industries, in particular for Blacks and Hispanics.

Suggested Citation

  • Benjamin Lerch, 2025. "From Blue- to Steel-Collar Jobs: The Decline in Employment Gaps?," American Economic Journal: Macroeconomics, American Economic Association, vol. 17(1), pages 126-160, January.
    • Handle: RePEc:aea:aejmac:v:17:y:2025:i:1:p:126-60
    DOI: 10.1257/mac.20220051
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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