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Long-Run Effects of Technological Change: The Impact of Automation and Robots on Intergenerational Mobility

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Abstract

This paper examines whether advancements in automation and robotics have affected intergenerational income mobility. Using detailed data on all individuals and firms in Sweden from 1985 to 2017, we analyze how parental exposure to robots at the occupational level and the heterogeneous adoption of robots across industries influence children’s outcomes in adulthood. Our results show that parents’ occupational exposure to robots is associated with lower income mobility for their children. Taking into account exposure at the occupational and industry levels, we find that the negative impact on intergenerational mobility originates from industries with a relatively large increase in robot adoption. Our results also indicate that children with exposed parents are worse off with regard to several labor market and family-related outcomes, including higher risks of unemployment and being out of the labor force. Overall, our paper reveals a new determinant that shapes intergenerational mobility and highlights that advancements in automation and robotics can have long-lasting effects on society.

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  • Heyman, Fredrik & Olsson, Martin, 2022. "Long-Run Effects of Technological Change: The Impact of Automation and Robots on Intergenerational Mobility," Working Paper Series 1451, Research Institute of Industrial Economics, revised 29 Jun 2023.
    • Handle: RePEc:hhs:iuiwop:1451
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    More about this item

    Keywords

    Intergenerational Mobility; Automation; Robots; Matched Employer-Employee Data;
    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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • 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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