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

Liuchun Deng, Steffen Müller, Verena Plümpe, Jens Stegmaier

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.

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Year of publication:	January 2023
Authors:	Deng, Liuchun ; Müller, Steffen ; Plümpe, Verena ; Stegmaier, Jens
Institutions:	Leibniz-Institut für Wirtschaftsforschung Halle (issuing body)
Publisher:	Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association
Subject:	automation \| employment \| industrial robots \| occupation \| worker age \| workforce composition \| Roboter \| Robot \| Ältere Arbeitskräfte \| Older workers \| Automatisierung \| Automation \| Arbeitskräfte \| Workforce \| Alternde Bevölkerung \| Aging population \| Arbeitsmarkt \| Labour market \| Arbeitsbedingungen \| Working conditions \| Beschäftigungseffekt \| Employment effect \| Erwerbstätigkeit \| Employment \| Fertigungsberufe \| Manufacturing occupations