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Robots and Employment: Evidence from Japan, 1978–2017

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  • Daisuke Adachi
  • Daiji Kawaguchi
  • Yukiko U. Saito

Abstract

This paper studies the relationship between industrial robots and employment in Japan on the basis of a unique dataset that allows us to calculate the unit price of robots. Our model combines standard factor demand theory with a recent task-based approach to derive a simple estimation equation between robot prices and employment, and our identification strategy leverages heterogeneous applications of robots across industries and heterogeneous price changes across applications. We find that the decline in robot prices increased both the number of robots and employment by raising the productivity and production scale of robot-adopting industries.

Suggested Citation

  • Daisuke Adachi & Daiji Kawaguchi & Yukiko U. Saito, 2024. "Robots and Employment: Evidence from Japan, 1978–2017," Journal of Labor Economics, University of Chicago Press, vol. 42(2), pages 591-634.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/723205
    DOI: 10.1086/723205
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    3. Fujiwara, Ippei & Kimoto, Ryo & Shiratsuka, Shigenori & Shirota, Toyoichiro, 2021. "Measuring Robot Quality: Has Quality Improvement Slowed Down?," CEPR Discussion Papers 16556, C.E.P.R. Discussion Papers.
    4. Koyo Miyoshi, 2021. "The Decline in the Labor Share: Evidence from Japanese Manufacturers f Panel Data," Discussion papers ron340, Policy Research Institute, Ministry of Finance Japan.
    5. Mauro Caselli & Andrea Fracasso & Sergio Scicchitano & Silvio Traverso & Enrico Tundis, 2021. "Stop worrying and love the robot: An activity-based approach to assess the impact of robotization on employment dynamics," DEM Working Papers 2021/06, Department of Economics and Management.
    6. Klump, Rainer & Jurkat, Anne & Schneider, Florian, 2021. "Tracking the rise of robots: A survey of the IFR database and its applications," MPRA Paper 110390, University Library of Munich, Germany.
    7. Mauro Caselli & Edwin Fourrier-Nicolai & Andrea Fracasso & Sergio Scicchitano, 2024. "Digital Technologies and Firms’ Employment and Training," CESifo Working Paper Series 11056, CESifo.
    8. ARAI Kosuke & FUJIWARA Ippei & SHIROTA Toyoichiro, 2021. "Robot Penetration and Task Changes," Discussion papers 21093, Research Institute of Economy, Trade and Industry (RIETI).

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