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Pandemics and Automation: Will the Lost Jobs Come Back?

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  • Tahsin Saadi Sedik

Abstract

COVID-19 has exacerbated concerns about the rise of the robots and other automation technologies. This paper analyzes empirically the impact of past major pandemics on robot adoption and inequality. First, we find that pandemic events accelerate robot adoption, especially when the health impact is severe and is associated with a significant economic downturn. Second, while robots may raise productivity, they could also increase inequality by displacing low-skilled workers. We find that following a pandemic, the increase in inequality over the medium term is larger for economies with higher robot density and where new robot adoption has increased more. Our results suggest that the concerns about the rise of the robots amid the COVID-19 pandemic seem justified.

Suggested Citation

  • Tahsin Saadi Sedik, 2021. "Pandemics and Automation: Will the Lost Jobs Come Back?," IMF Working Papers 2021/011, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/011
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    Cited by:

    1. Leonardo Bonilla-Mejía & Luz A. Florez & Didier Hermida & Francisco Lasso & Leonardo Fabio Morales & Juan Jose Ospina & José Pulido, 2023. "Is the COVID-19 Pandemic Fast-Tracking Automation in Developing Countries? Evidence from Colombia," Journal of Human Capital, University of Chicago Press, vol. 17(4), pages 593-616.
    2. Azio Barani, 2021. "Innovazione tecnologica e lavoro: automazione, occupazione e impatti socio-economici," QUADERNI DI ECONOMIA DEL LAVORO, FrancoAngeli Editore, vol. 0(114), pages 51-79.
    3. Joe Piacentini & Harley Frazis & Peter B. Meyer & Michael Schultz & Leo Sveikauskas, 2022. "The Impact of COVID-19 on Labor Markets and Inequality," Economic Working Papers 551, Bureau of Labor Statistics.
    4. Dimitri B. Papadimitriou & Christos Pierros & Nikos Rodousakis & Gennaro Zezza, 2021. "Restarting the Greek Economy?," Economics Strategic Analysis Archive sa_5_21, Levy Economics Institute.
    5. 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.

    More about this item

    Keywords

    Pandemics; Robots; Inequality.; WP; pandemic event; studies showing; impact of pandemic; country-industry pair level; industry breakdown;
    All these keywords.

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