TY - UNPB
T1 - Automation and Income Inequality in Europe
AU - Gromadzki, Jan
AU - Doorley, Karina
AU - Lewandowski, Piotr
AU - Tuda, Dora
AU - Van Kerm, Philippe
PY - 2023/11
Y1 - 2023/11
N2 - We study the effects of robot penetration on household income inequality in 14 European countries between 2006–2018, a period of rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more exposed demographic groups, similarly to the results for the US. 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.
AB - We study the effects of robot penetration on household income inequality in 14 European countries between 2006–2018, a period of rapid adoption of industrial robots. Automation reduced relative hourly wages and employment of more exposed demographic groups, similarly to the results for the US. 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.
U2 - 10.57938/ec9db986-1a25-402d-b20b-d543aab6c029
DO - 10.57938/ec9db986-1a25-402d-b20b-d543aab6c029
M3 - WU Working Paper
T3 - INEQ Working Paper Series
BT - Automation and Income Inequality in Europe
ER -