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Robots and Labor in the Service Sector: Evidence from Nursing Homes

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Listed:
  • Karen Eggleston
  • Yong Suk Lee
  • Toshiaki Iizuka

Abstract

In one of the first studies of service sector robotics using establishment-level data, we study the impact of robots on staffing in Japanese nursing homes, using geographic variation in robot subsidies as an instrumental variable. We find that robot adoption increases employment by augmenting the number of care workers and nurses on flexible employment contracts, and decreases difficulty in staff retention. Robot adoption also reduces the monthly wages of regular nurses, consistent with reduced burden of care. Our findings suggest that the impact of robots may not be detrimental to labor and may remedy challenges posed by rapidly aging populations.

Suggested Citation

  • Karen Eggleston & Yong Suk Lee & Toshiaki Iizuka, 2021. "Robots and Labor in the Service Sector: Evidence from Nursing Homes," NBER Working Papers 28322, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28322
    Note: AG EH LS
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    Cited by:

    1. Almuhaisen, Abdulmohsen & Amuedo-Dorantes, Catalina & Furtado, Delia, 2024. "Immigration enforcement and the institutionalization of elderly Americans," Journal of Health Economics, Elsevier, vol. 94(C).
    2. Qiren Liu & Sen Luo & Robert Seamans, 2023. "Pain or Anxiety? The Health Consequences of Rising Robot Adoption in China," Papers 2301.10675, arXiv.org.
    3. Sun, Wenyuan & Zhang, Zhonghui & Chen, Yang & Luan, Fushu, 2023. "Heterogeneous effects of robots on employment in agriculture, industry, and services sectors," Technology in Society, Elsevier, vol. 75(C).
    4. Lee, Yong Suk & Kim, Taekyun & Choi, Sukwoong & Kim, Wonjoon, 2022. "When does AI pay off? AI-adoption intensity, complementary investments, and R&D strategy," Technovation, Elsevier, vol. 118(C).
    5. Michele Fornino & Andrea Manera, 2022. "Automation and the Future of Work: Assessing the Role of Labor Flexibility," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 45, pages 282-321, July.

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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