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Robots, occupations, and worker age: A production-unit analysis of employment

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  • Deng, Liuchun
  • Müller, Steffen
  • Plümpe, Verena
  • Stegmaier, Jens

Abstract

We analyse the impact of robot adoption on employment composition using novel micro data on robot use in German manufacturing plants linked with social security records and data on job tasks. Our task-based model predicts more favourable employment effects for the least routine-task intensive occupations and for young workers, with the latter being better at adapting to change. An event-study analysis of robot adoption confirms both predictions. We do not find adverse employment effects for any occupational or age group, but churning among low-skilled workers rises sharply. We conclude that the displacement effect of robots is occupation biased but age neutral, whereas the reinstatement effect is age biased and benefits young workers most.

Suggested Citation

  • Deng, Liuchun & Müller, Steffen & Plümpe, Verena & Stegmaier, Jens, 2023. "Robots, occupations, and worker age: A production-unit analysis of employment," IWH Discussion Papers 5/2023, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:52023
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    Cited by:

    1. Deng, Liuchun & Fujio, Minako & Lin, Xin & Ota, Rui, 2023. "Labor shortage and early robotization in Japan," Economics Letters, Elsevier, vol. 233(C).
    2. João Amador, 2024. "Robots in Portuguese Firms," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.

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    More about this item

    Keywords

    automation; employment; industrial robots; occupation; worker age; workforce composition;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • 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
    • 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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