1. The Impact of Robots in Latin America: Evidence from Local Labor Markets
- Author:
- Irene Brambilla, Andrés César, Guillermo Falcone, and Leonardo Gasparini
- Publication Date:
- 04-2023
- Content Type:
- Working Paper
- Institution:
- Center for Distributive, Labor and Social Studies (CEDLAS)
- Abstract:
- We study the effect of robots on labor markets in Argentina, Brazil, and Mexico, the major robot users in Latin America, during the period 2004{2016. We exploit spatial and time variations in exposure to robots arising from initial differences in industry specialization across geographic locations and the evolution of robot adoption across industries, to estimate a causal effect of robots on local labor market outcomes. We find that district’s exposure to robots causes a relative deterioration in labor market indicators such us unemployment and labor informality. We document that robots mainly replace formal salaried jobs, affecting young and semi-skilled workers to a greater extent, and that informal employment acts as a buffer that prevents a larger increase in unemployment.
- Topic:
- Unemployment, Robotics, Labor Market, and Informal Economy
- Political Geography:
- Brazil, Argentina, Latin America, and Mexico