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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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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author Zheng Fang
Soon Hock Kang
Sandra Myo Han May
author_facet Zheng Fang
Soon Hock Kang
Sandra Myo Han May
author_sort Zheng Fang
collection DOAJ
description 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.
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spelling doaj-art-e32a0c829b07407a8198ee306e5a6fa32025-08-20T02:38:05ZengElsevierAsia and the Global Economy2667-11152024-07-014210009910.1016/j.aglobe.2024.100099Does automation really reduce jobs?Zheng Fang0Soon Hock Kang1Sandra Myo Han May2Office of Graduate Studies, Singapore University of Social Sciences, Singapore; Correspondence author at: Associate Professor, Director, Office of Graduate Studies, Singapore University of Social Sciences, 463 Clementi Road, Singapore 599494.School of Humanities and Behavioural Sciences, Singapore University of Social Sciences, SingaporeSchool of Humanities and Behavioural Sciences, Singapore University of Social Sciences, SingaporeUsing 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.http://www.sciencedirect.com/science/article/pii/S2667111524000239O33E24
spellingShingle Zheng Fang
Soon Hock Kang
Sandra Myo Han May
Does automation really reduce jobs?
Asia and the Global Economy
O33
E24
title Does automation really reduce jobs?
title_full Does automation really reduce jobs?
title_fullStr Does automation really reduce jobs?
title_full_unstemmed Does automation really reduce jobs?
title_short Does automation really reduce jobs?
title_sort does automation really reduce jobs
topic O33
E24
url http://www.sciencedirect.com/science/article/pii/S2667111524000239
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