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Digitization-based automation and occupational dynamics

Gardberg, Malin ; Heyman, Fredrik LU ; Norbäck, Pehr Johan and Persson, Lars LU (2020) In Economics Letters 189.
Abstract

We examine the relationship between occupational automation probabilities and employment dynamics over nearly two decades. We show that employment and wage shares of occupations with a higher automation risk have declined in Sweden over the period 1996-2013. This has occurred both at the aggregate private business sector but also within firms, where the wage share changes have been larger than the employment share changes. Combining the automation risk in workers’ occupations with individual worker characteristics, we find substantial heterogeneity. This includes that education dampens the automation risk of workers, as the average automation probability of low-skilled workers is almost twice as high as of university graduates.... (More)

We examine the relationship between occupational automation probabilities and employment dynamics over nearly two decades. We show that employment and wage shares of occupations with a higher automation risk have declined in Sweden over the period 1996-2013. This has occurred both at the aggregate private business sector but also within firms, where the wage share changes have been larger than the employment share changes. Combining the automation risk in workers’ occupations with individual worker characteristics, we find substantial heterogeneity. This includes that education dampens the automation risk of workers, as the average automation probability of low-skilled workers is almost twice as high as of university graduates. Employment shares in high-risk occupations have moreover declined across all wage levels, and most so in high-wage occupations. Our results indicate that it is not necessarily the level of risk that matter, but rather the heterogeneity between occupations.

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author
; ; and
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Automation, Digitization, Employment shares, Wage shares
in
Economics Letters
volume
189
article number
109032
publisher
Elsevier
external identifiers
  • scopus:85079893707
ISSN
0165-1765
DOI
10.1016/j.econlet.2020.109032
language
English
LU publication?
no
id
75ec5b39-37bc-44a1-88d3-5cfc5731d6f5
date added to LUP
2020-03-05 14:53:54
date last changed
2020-03-11 08:22:10
@article{75ec5b39-37bc-44a1-88d3-5cfc5731d6f5,
  abstract     = {<p>We examine the relationship between occupational automation probabilities and employment dynamics over nearly two decades. We show that employment and wage shares of occupations with a higher automation risk have declined in Sweden over the period 1996-2013. This has occurred both at the aggregate private business sector but also within firms, where the wage share changes have been larger than the employment share changes. Combining the automation risk in workers’ occupations with individual worker characteristics, we find substantial heterogeneity. This includes that education dampens the automation risk of workers, as the average automation probability of low-skilled workers is almost twice as high as of university graduates. Employment shares in high-risk occupations have moreover declined across all wage levels, and most so in high-wage occupations. Our results indicate that it is not necessarily the level of risk that matter, but rather the heterogeneity between occupations.</p>},
  author       = {Gardberg, Malin and Heyman, Fredrik and Norbäck, Pehr Johan and Persson, Lars},
  issn         = {0165-1765},
  language     = {eng},
  month        = {04},
  publisher    = {Elsevier},
  series       = {Economics Letters},
  title        = {Digitization-based automation and occupational dynamics},
  url          = {http://dx.doi.org/10.1016/j.econlet.2020.109032},
  doi          = {10.1016/j.econlet.2020.109032},
  volume       = {189},
  year         = {2020},
}