Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review
Robots and firms. / Koch, Michael Johannes; Manuylov, Ilya; Smolka, Marcel Buus.
In: The Economic Journal, Vol. 131, No. 638, 08.2021, p. 2553-2584.Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review
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TY - JOUR
T1 - Robots and firms
AU - Koch, Michael Johannes
AU - Manuylov, Ilya
AU - Smolka, Marcel Buus
PY - 2021/8
Y1 - 2021/8
N2 - We study the microeconomic implications of robot adoption using a rich panel data set of Spanish manufacturing firms over a 27-year period (1990-2016). We provide causal evidence on two central questions: (1) Which firm characteristics prompt firms to adopt robots? (2) What is the impact of robots on adopting firms relative to non-adopting firms? To address these questions, we look at our data through the lens of recent attempts in the literature to formalise the implications of robot technology. As for the first question, we establish robust evidence for positive selection, i.e., ex ante better performing firms (measured through output and labour productivity) are more likely to adopt robots. On the other hand, conditional on size, ex ante more skill-intensive firms are less likely to do so. As for the second question, we find that robot adoption generates substantial output gains in the vicinity of 20-25% within four years, reduces the labour cost share by 5-7% points, and leads to net job creation at a rate of 10%. These results are robust to controlling for non-random selection into robot adoption through a difference-in-differences approach combined with a propensity score reweighting estimator. To further validate these results, we also offer structural estimates of total factor productivity (TFP) where robot technology enters the (endogenous) productivity process of firms. The results demonstrate a positive causal effect of robots on productivity as well as a complementarity between robots and exporting in boosting productivity.
AB - We study the microeconomic implications of robot adoption using a rich panel data set of Spanish manufacturing firms over a 27-year period (1990-2016). We provide causal evidence on two central questions: (1) Which firm characteristics prompt firms to adopt robots? (2) What is the impact of robots on adopting firms relative to non-adopting firms? To address these questions, we look at our data through the lens of recent attempts in the literature to formalise the implications of robot technology. As for the first question, we establish robust evidence for positive selection, i.e., ex ante better performing firms (measured through output and labour productivity) are more likely to adopt robots. On the other hand, conditional on size, ex ante more skill-intensive firms are less likely to do so. As for the second question, we find that robot adoption generates substantial output gains in the vicinity of 20-25% within four years, reduces the labour cost share by 5-7% points, and leads to net job creation at a rate of 10%. These results are robust to controlling for non-random selection into robot adoption through a difference-in-differences approach combined with a propensity score reweighting estimator. To further validate these results, we also offer structural estimates of total factor productivity (TFP) where robot technology enters the (endogenous) productivity process of firms. The results demonstrate a positive causal effect of robots on productivity as well as a complementarity between robots and exporting in boosting productivity.
KW - EMPLOYMENT
KW - EXPORTS
KW - GROWTH
KW - IMPACT
KW - INNOVATION
KW - JOBS
KW - PRODUCTIVITY
KW - RESEARCH-AND-DEVELOPMENT
KW - TECHNOLOGY
KW - TRADE
U2 - 10.1093/ej/ueab009
DO - 10.1093/ej/ueab009
M3 - Journal article
VL - 131
SP - 2553
EP - 2584
JO - Economic Journal
JF - Economic Journal
SN - 0013-0133
IS - 638
ER -