Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271881 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10237
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper examines the labor market adjustments to four automation technologies (i.e. robots, communication technology, information technology, and software/database) in 227 regions across 22 European countries from 1995 to 2017. By constructing a measure of technology penetration, we estimate changes in regional employment and wages affected by automation technologies along with the reallocation of workers between sectors. We find that labor market adjustments to automation technologies differ according to i) the technology involved, ii) the sector of penetration, iii) the sectoral composition of the region, and iv) the region's technological capabilities. These adjustments are driven largely by the reallocation of low-paid workers across sectors.
Subjects: 
automation technology
labor market
employment reallocation
sectoral composition
JEL: 
J21
O33
R23
Document Type: 
Working Paper
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