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Computerized Machine Tools and the Transformation of US Manufacturing

Author

Listed:
  • Leah Platt Boustan
  • Jiwon Choi
  • David Clingingsmith

Abstract

The diffusion of computerized machine tools in the mid-20th century was a pivotal step in the century-long process of factory automation. We build a novel measure of exposure to computer numerical control (CNC) using initial variation in tool types across industries and differential shifts toward CNC by type. Industries more exposed to CNC from 1970-2010 increased labor productivity and reduced production employment. Workers in more exposed labor markets adjusted by shifting from metal to non-metal manufacturing. Union members were shielded from this job loss, and some workers returned to school to retrain.

Suggested Citation

  • Leah Platt Boustan & Jiwon Choi & David Clingingsmith, 2022. "Computerized Machine Tools and the Transformation of US Manufacturing," NBER Working Papers 30400, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:30400
    Note: DAE LS
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    Cited by:

    1. Jeff Borland & Michael Coelli, 2023. "The Australian labour market and IT-enabled technological change," Melbourne Institute Working Paper Series wp2023n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    2. Jacobs, Arthur, 2023. "Capital-augmenting technical change in the context of untapped automation opportunities," Mathematical Social Sciences, Elsevier, vol. 123(C), pages 155-166.
    3. Anand Chopra & Ronit Mukherji, 2024. "Automation and Local Labour Markets: Impact of Immigrant Mobility," Working Papers 9, University of Liverpool, Department of Economics.
    4. Lipowski, Cäcilia & Salomons, Anna & Zierahn-Weilage, Ulrich, 2024. "Expertise at work: New technologies, new skills, and worker impacts," ZEW Discussion Papers 24-044, ZEW - Leibniz Centre for European Economic Research.
    5. Leah Platt Boustan & Jiwon Choi & David Clingingsmith, 2024. "The Political Fallout of Machine Tool Automation in the Mid-20th Century United States," NBER Chapters, in: The Economic History of American Inequality: New Evidence and Perspectives, National Bureau of Economic Research, Inc.
    6. Wenchao Jin, 2022. "Occupational polarisation and endogenous task-biased technical change," Working Paper Series 0622, Department of Economics, University of Sussex Business School.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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