Automation and labor force participation in advanced economies: Macro and micro evidence

B-Tier
Journal: European Economic Review
Year: 2020
Volume: 126
Issue: C

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Technological advances raise productivity and growth, but are also likely to reshape labor markets. We examine the impact of automation on aggregate labor force participation rates and individuals’ attachment to the workforce in advanced economies. Cross-country analysis, which leverages the variation in the routinizability of occupations and occupational composition, points to significant negative effects of automation on the participation rates of prime-age men and women. Individual-level analysis confirms that workers previously employed in routinizable occupations are more likely to drop out of the labor force. Encouragingly, higher spending on active labor market programs and education are, however, associated with smaller negative effects of technological change on participation.

Technical Details

RePEc Handle
repec:eee:eecrev:v:126:y:2020:i:c:s0014292120300751
Journal Field
General
Author Count
3
Added to Database
2026-01-25