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Impact of Robot Installations on Employment and Labour Productivity in Automotive Industry

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  • Lenka Pisková
  • Marian Dobranschi
  • Pavel Semerád
  • Milena Otavová

Abstract

The automotive industry is regarded as one of the most robotized sectors of the manufacturing industry. The topic of robotization is currently intensely debated as part of the Fourth Industrial Revolution or Industry 4.0. In this study, we focus on automobile manufacturers operating in selected countries of the European Union and analyse the level of labour productivity and employment in the period 2002-2021. Specifically, we investigate whether the annual installation of robots and the total number of robots in the automotive industry have a negative impact on labour demand. The collected data are evaluated using empirical analysis. Our estimations show that the installation of robots in the automotive industry has a positive effect on labour demand. At the same time, however, it is found that labour productivity tends to decrease as the number of robots increases. A possible explanation for these results is that major manufacturing activities in this sector are being replaced with machines at the expense of human labour. Implications for Central European audience: Theoretical implications of the article arise from primary literature, which investigates the implications of industry robotization on the labour market. The practical implications stem from our empirical analysis, which investigates the impact of robotization on labour demand and productivity in automobile industries across the EU.

Suggested Citation

  • Lenka Pisková & Marian Dobranschi & Pavel Semerád & Milena Otavová, 2024. "Impact of Robot Installations on Employment and Labour Productivity in Automotive Industry," Central European Business Review, Prague University of Economics and Business, vol. 2024(2), pages 53-68.
    • Handle: RePEc:prg:jnlcbr:v:2024:y:2024:i:2:id:342:p:53-68
    DOI: 10.18267/j.cebr.342
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    References listed on IDEAS

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    1. Nancey Green Leigh & Heonyeong Lee & Benjamin Kraft, 2022. "Disparities in robot adoption among U.S. manufacturers: a critical economic development challenge," Industry and Innovation, Taylor & Francis Journals, vol. 29(9), pages 1025-1044, October.
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    3. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    4. Timothy J. Sturgeon & Olga Memedovic & Johannes Van Biesebroeck & Gary Gereffi, 2009. "Globalisation of the automotive industry: main features and trends," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 2(1/2), pages 7-24.
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    6. Joonmo Cho & Jinha Kim, 2018. "Identifying Factors Reinforcing Robotization: Interactive Forces of Employment, Working Hour and Wage," Sustainability, MDPI, vol. 10(2), pages 1-21, February.
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    More about this item

    Keywords

    automation; automotive industry; robotization;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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