Robots, Unions, and Aging: Determinants of Robot Adoption Evidence from OECD Countries
Anthology (BUPA FINALIST)
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In recent years there has been a growing concern about labor market changes due to rapid technological advancement in robotics and artificial intelligence. While much of the work focused on industrial robot adoption has looked at the effects on labor market outcomes, there is little empirical work exploring the determinants of this adoption. In this paper, the role that aging, unions, and a reliance on automatable industries play in characterizing robot adoption during the period from 2000 to 2015 in 34 Organization for Economic Cooperation and Development (OECD) countries was analyzed. A simple two-sector model was used that allowed the relative supply of young and old labor to affect robot adoption. In the model, robots and young labor competed in the robot-using sector. Old labor was used in the non-robot-using sector. Solving the model yielded the following relationship among industrial robots ( R d), the price of exogenously supplied robots ( ρ), the relative importance of the...
© International Atlantic Economic Society 2019