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Robots, occupations, and worker age: A production-unit analysis of employment

Author

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  • Deng, Liuchun
  • Müller, Steffen
  • Plümpe, Verena
  • Stegmaier, Jens

Abstract

We analyze the impact of robot adoption on employment composition using novel micro data on robot use of German manufacturing plants linked with social security records and data on job tasks. Our task-based model predicts more favorable employment effects for the least routine-task intensive occupations and for young workers, the latter being better at adapting to change. An event-study analysis for robot adoption confirms both predictions. We do not find decreasing employment for any occupational or age group but churning among low-skilled workers rises sharply. We conclude that the displacement effect of robots is occupation-biased but age neutral whereas the reinstatement effect is age-biased and benefits young workers most.

Suggested Citation

  • Deng, Liuchun & Müller, Steffen & Plümpe, Verena & Stegmaier, Jens, 2024. "Robots, occupations, and worker age: A production-unit analysis of employment," European Economic Review, Elsevier, vol. 170(C).
    • Handle: RePEc:eee:eecrev:v:170:y:2024:i:c:s0014292124002101
    DOI: 10.1016/j.euroecorev.2024.104881
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    Keywords

    Robot adoption; Employment; Firm-level; Event-study;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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