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Automation and unemployment: Does collective bargaining moderate their association?

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  • Leibrecht, Markus
  • Scharler, Johann
  • Zhoufu, Yan

Abstract

The stock of robots used in industrial production in the OECD more than doubled over the last two decades. Empirically, the direction of the association between automation and (un-)employment varies across countries. Which factors explain this cross-country variation? We argue that differences in collective bargaining systems play a role. We structure the collective bargaining systems of 37 OECD and EU countries by the degree of coordination of their collective bargaining on the one hand, and by the strength of labor unions on the other hand. These results in four types of collective bargaining systems: highly coordinated with strong unions; highly coordinated with weak unions; weakly coordinated with strong unions and weakly coordinated with weak unions. We use a dynamic panel data approach to investigate whether the association between increased automation and the unemployment rates of different societal groups differs across collective bargaining systems. Our findings are consistent with the view that increased automation is positively associated with unemployment in countries where collective bargaining is weak. In coordinated systems the association is muted, notably for workers with medium skill levels, that is, for the group of workers which is frequently seen to be especially prone to be “automated away”. We cannot unveil indications of insider-outsider behavior of labor unions.

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  • Leibrecht, Markus & Scharler, Johann & Zhoufu, Yan, 2023. "Automation and unemployment: Does collective bargaining moderate their association?," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 264-276.
  • Handle: RePEc:eee:streco:v:67:y:2023:i:c:p:264-276
    DOI: 10.1016/j.strueco.2023.08.006
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    Cited by:

    1. Lewandowski, Piotr & Szymczak, Wojciech, 2024. "Automation, Trade Unions and Atypical Employment," IZA Discussion Papers 17544, Institute of Labor Economics (IZA).
    2. Bachmann, Ronald & Gonschor, Myrielle & Lewandowski, Piotr & Madoń, Karol, 2024. "The impact of Robots on Labour market transitions in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 70(C), pages 422-441.
    3. Heluo, Yuxi & Fabel, Oliver, 2024. "Job computerization, occupational employment and wages: A comparative study of the United States, Germany, and Japan," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    4. Piotr Lewandowski & Wojciech Szymczak, 2024. "Automation, Trade Unions and Involuntary Atypical Employment," IBS Working Papers 02/2024, Instytut Badan Strukturalnych.

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    More about this item

    Keywords

    OECD; EU; Automation; Unemployment; Union density; Collective bargaining; Coordination; Labor market institutions;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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