What Happens to Workers at Firms that Automate?

A-Tier
Journal: Review of Economics and Statistics
Year: 2025
Volume: 107
Issue: 1
Pages: 125-141

Authors (4)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We estimate the impact of firm-level automation on individual worker outcomes by combining Dutch microdata with a direct measure of automation expenditures covering all private nonfinancial sector firms. Using a novel difference-in-differences event-study design leveraging lumpy investment, we find that automation increases the probability of incumbent workers separating from their employers. Workers experience a five-year cumulative wage income loss of 9% of one year’s earnings, driven by decreases in days worked. These adverse impacts of automation are larger in smaller firms, and for older and middle-educated workers. By contrast, no such losses are found for firms’ investments in computers.

Technical Details

RePEc Handle
repec:tpr:restat:v:107:y:2025:i:1:p:125-141
Journal Field
General
Author Count
4
Added to Database
2026-01-24