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The impact of robots in Latin America: Evidence from local labor markets

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  • Andrés César
  • Guillermo Falcone
  • Irene Brambilla
  • Leonardo Gasparini

Abstract

We study the effect of robots on labor markets in Argentina, Brazil, and Mexico, the major robot users in Latin America, during the period 2004–2016. We exploit spatial and time variations in exposure to robots arising from initial differences in industry specialization across geographic locations and the evolution of robot adoption across industries, to estimate a causal effect of robots on local labor market outcomes. We find that district’s exposure to robots causes a relative deterioration in labor market indicators such us unemployment and labor informality. We document that robots mainly replace formal salaried jobs, affecting young and semi-skilled workers to a greater extent, and that informal employment acts as a buffer that prevents a larger increase in unemployment.
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  • Andrés César & Guillermo Falcone & Irene Brambilla & Leonardo Gasparini, 2021. "The impact of robots in Latin America: Evidence from local labor markets," Asociación Argentina de Economía Política: Working Papers 4451, Asociación Argentina de Economía Política.
    • Handle: RePEc:aep:anales:4451
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    References listed on IDEAS

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    Cited by:

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    2. Darıcı, Sefer & Riaz, Muhammad & Demir, Gülay & Gencer, Zekiye Tamer & Pamucar, Dragan, 2024. "How will I break AI? Post-Luddism in the AI age: Fuzzy MCDM synergy," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    3. Guzel Salimova & Alisa Ableeva & Rasul Gusmanov & Gulnara Nigmatullina & Tatyana Lubova, 2024. "Multidimensional Assessment of the Labour Market in the Regions of the Russian Federation," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(2), pages 547-569, June.
    4. Guillermo Cruces & Verónica Amarante & Estefanía Lotitto, 2024. "Generative Artificial Intelligence and Its Implications for Labor Markets in Developing Countries: A Review Essay," CEDLAS, Working Papers 0343, CEDLAS, Universidad Nacional de La Plata.

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    More about this item

    Keywords

    Robots; Labor markets; Latin America;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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