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Title: Robots are not always bad for employment and wages
Authors: Sequeira, Tiago Miguel Guterres Neves 
Garrido, Susana 
Santos, Marcelo
Keywords: Robots, Employment, Fourth Industrial Revolution, Nonlinear effects of robots
Issue Date: 27-Oct-2020
Project: FCT - Fundação para a Ciência e a Tecnologia, I.P., Project UIDB/05037/2020 
Series/Report no.: CeBER Working Paper 2020-16;
Abstract: We reassess the impact that robotization has on wages and employment, using a database on US commuting zones from 1990 to 2007. Using an argument based on the transitional dynamics we show that the negative displacement effects of robotization can be surpassed by productivity and reallocation effects, leading to positive effects on employment after a certain level of penetration in industry. In fact, we confirm this effect through regressions that are subject to different robustness checks. Previous evidence according to which robotization always decreases employment and wages are thus not confirmed.
Rights: openAccess
Appears in Collections:I&D CeBER - Working Papers

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