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Unveiling the automation—wage inequality nexus within and across regions

Author

Listed:
  • Roberta Capello

    (Politecnico di Milano)

  • Simona Ciappei

    (Politecnico di Milano)

  • Camilla Lenzi

    (Politecnico di Milano)

Abstract

Since the1800s, automation technologies have been interpreted as a source of displacement effects, largely conceptualised and empirically proved in a vast literature. This paper claims that, despite their non-manufacturing nature, metropolitan regions are not exempted by the negative effects of automation on wage inequalities across workers’ groups. The paper empirically proves this statement by analysing the effects on jobs and wage differentials among groups of workers associated with the diffusion of robot technologies in Italian NUTS3 regions in the period 2012–2019. Results show that automation technologies in the form of robotisation do displace jobs, harming particularly low-skilled workers in non-metropolitan manufacturing regions, where inter-group wage inequalities increase. However, through the creation of high-skilled jobs, also cities experience a rise of inter-group workers inequalities. These results call for appropriate policies to cope with the changing occupational profiles requested by the labour market.

Suggested Citation

  • Roberta Capello & Simona Ciappei & Camilla Lenzi, 2024. "Unveiling the automation—wage inequality nexus within and across regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(4), pages 1729-1756, December.
    • Handle: RePEc:spr:anresc:v:73:y:2024:i:4:d:10.1007_s00168-024-01317-7
    DOI: 10.1007/s00168-024-01317-7
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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • 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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