10:00 - 12:00
What Are the Labor and Product Market Effects of Automation? New Evidence from France
We use comprehensive micro data in the French manufacturing sector between 1995 and 2017 to document the effects of automation technologies on employment, sales, prices, wages, and the labor share.
Causal effects are estimated with event studies and a shift-share IV design leveraging pre-determined supply linkages and productivity shocks across foreign suppliers of industrial equipment. At all levels of analysis — plant, firm, and industry — the estimated impact of automation on employment is positive, even for unskilled industrial workers. We find that automation leads to higher sales, higher profits, and lower consumer prices, while it leaves wages, the labor share and within-firm wage inequality unchanged. Consistent with the importance of business-stealing across countries, the estimated industry-level employment response to automation is stronger in industries that face international competition. Read more ...
To join the lecture via ZOOM, please contact Javier Miranda.