Work

Automation, firm size, and skill groups

Year: 2025
Type: preprint
Abstract: This paper examines the impact of automation investments on employment dynamics and workforce composition using administrative data from Portugal. I exploit the lumpiness of automation imports in a difference-in-differences event study design. My results show that automation creates jobs in small firms but leads to job losses in larger ones. This pattern holds across a wide range of firm types, industries and types of automation technologies. Most importantly, automation favors low-educated, routine-blue-collar workers in routine-intensive jobs over highly skilled workers like STEM professionals. These findings challenge the view of automation as inherently skill-biased.
Language: English
Open Access status: green
OpenAlex ID: W6935811283
Cites:
Cited by:
Related to: