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Robots Worldwide: The Impact of Automation on Employment and Trade

Author

Listed:
  • Carbonero, Francesco
  • Ernst, Ekkehard
  • Weber, Enzo
Abstract
The impact of robots on employment and trade is a highly discussed topic in the academic and public debates. Particularly, there are concerns that automation may threat jobs in emerging countries given the erosion of the labour cost advantage. We provide evidence on the effects of robots on worldwide employment, including emerging economies. To instrument the use of robots, we introduce an index of technical progress, defined as the ability of robots to carry out different tasks. Robots turn out to have a significantly negative impact on worldwide employment. While it is small in developed countries, for emerging economies it amounts to -11 per cent between 2005 and 2014. However, here, there appear positive spillovers especially from robotisation in manufacturing on employment outside manufacturing. Furthermore, we assess cross-country effects, finding that robots in developed countries decrease off-shoring just as employment in emerging economies.

Suggested Citation

  • Carbonero, Francesco & Ernst, Ekkehard & Weber, Enzo, 2020. "Robots Worldwide: The Impact of Automation on Employment and Trade," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224602, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc20:224602
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    References listed on IDEAS

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    1. Francesco Chiacchio & Georgios Petropoulos & David Pichler, 2018. "The impact of industrial robots on EU employment and wages- A local labour market approach," Working Papers 25186, Bruegel.
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    10. repec:oup:qjecon:v:129:y:2013:i:1:p:61-103 is not listed on IDEAS
    11. Carbonero, Francesco. & Ernst, Ekkehard & Weber, Enzo., 2018. "Robots worldwide the impact of automation on employment and trade," ILO Working Papers 995008793402676, International Labour Organization.
    12. Dauth, Wolfgang & Findeisen, Sebastian & Südekum, Jens & Wößner, Nicole, 2017. "German robots - the impact of industrial robots on workers," IAB-Discussion Paper 201730, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. Carbonero, Francesco & Offermanns, Christian J. & Weber, Enzo, 2017. "The fall of the labour income share: the role of technological change and imperfect labour markets," IAB-Discussion Paper 201728, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    robot; technology; employment; off-shoring; re-shoring;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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