Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282626 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16499
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the effects of robot penetration on household income inequality in 14 European countries between 2006–2018, a period marked by the rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more exposed demographic groups, similarly to the results for the United States. Using robot-driven wage and employment shocks as input to the EUROMOD microsimulation model, we find that automation had minor effects on income inequality. Household labour income diversification and tax and welfare policies largely absorbed labour market shocks caused by automation. Transfers played a key role in cushioning the transmission of these shocks to household incomes.
Subjects: 
robots
automation
tasks
income inequality
wage inequality
microsimulation
JEL: 
J24
O33
J23
Document Type: 
Working Paper

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