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Technology adoption and jobs: The effects of self-service kiosks in restaurants on labor outcomes

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  • Yoon, Chungeun

Abstract

This study explores how technology adoption affects labor. I investigate the effect of restaurants' adoption of self-service kiosks on labor outcomes, using survey data from Korea. I find that businesses’ adoption of self-service kiosks had little impact on their number of full-time or part-time workers. However, restaurants with a self-service kiosk decreased both the wages of their part-time workers and the number of unpaid family members they employed. The results are driven by franchise restaurants. Independently owned restaurants that adopted kiosks increased the wages of their full-time workers. These findings provide support for the efficiency wage theory as well as the skill-biased technological change theory. The results suggest that when businesses adopt new technologies, these technologies do not replace unskilled labor, but rather raise the relative wages of skilled workers.

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  • Yoon, Chungeun, 2023. "Technology adoption and jobs: The effects of self-service kiosks in restaurants on labor outcomes," Technology in Society, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:teinso:v:74:y:2023:i:c:s0160791x23001410
    DOI: 10.1016/j.techsoc.2023.102336
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    2. Didier, Nicolas, 2024. "Turning fragments into a lens: Technological change, industrial revolutions, and labor," Technology in Society, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    Technology adoption; Kiosk; Employment; Skill-biased technological change; Efficiency wages;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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