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Robotic capital - skill complementarity

Year: 2024

Type: article

Abstract: Relying upon an original (country-sector-year) measure of robotic capital, we study the extent of complementarity/substitutability between robots and workers at different skill levels. Relying on nonparametric analysis, we estimate country-sector elasticity of substitution patterns, over the 1995-2009 period, between robots and skilled/unskilled labor. We show that: i) robotization tends to increase the relative substitutability of unskilled labor; ii) this tendency strengthened from the beginning of ’00s; iii) both the tendency and its increase have been more pronounced in OECD, compared to Non-OECD countries and in Manufacturing, compared to Non-Manufacturing; iv) substantial heterogeneity exists.

Source: Macroeconomic Dynamics

DOI: 10.1017/s1365100524000567

Authors: Michele Battisti, Massimo Del Gatto, Antonio Francesco Gravina, Christopher F. Parmeter

Institutions: University of Palermo, University of Chieti-Pescara, Libera Università Internazionale degli Studi Sociali Guido Carli, University of Miami

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W4404121568