Does automation really reduce jobs?

Using panel data from 63 countries in 2005–2021 and the generalised method of moments, this paper examines the impact of industrial robot utilisation on employment. Results show a 1 % increase in new industrial robot installations per 10,000 workers reduces the unemployment rate by 0.037 %-0.039 %....

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Bibliographic Details
Main Authors: Zheng Fang, Soon Hock Kang, Sandra Myo Han May
Format: Article
Language:English
Published: Elsevier 2024-07-01
Series:Asia and the Global Economy
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2667111524000239
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Summary:Using panel data from 63 countries in 2005–2021 and the generalised method of moments, this paper examines the impact of industrial robot utilisation on employment. Results show a 1 % increase in new industrial robot installations per 10,000 workers reduces the unemployment rate by 0.037 %-0.039 %. The impact is more pronounced for male workers (0.045 %) than female workers (0.033 %), and youth unemployment is more significantly affected. Lastly, automation is found to reduce the unemployment rate by 0.052 % for people with intermediate education, yet with little effect on those with basic or advanced educational attainment.
ISSN:2667-1115