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  4. May 2020
  5. Firm-Level Automation: Evidence from the Netherlands

Firm-Level Automation: Evidence from the Netherlands

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Abstract

Studying firm-level adjustments is important for understanding the economic effects of workplace automation. So far, emerging firm-level evidence is focused on robotics and the manufacturing sector. In this paper, we document that the adoption of automation technologies extends beyond manufacturing firms. We identify firm-level automation events and show that automating firms experience faster employment and revenue growth than do nonautomating firms. However, around automation events themselves, employment growth slows markedly. Notably, we find that these effects are similar for manufacturing and nonmanufacturing firms, suggesting that an increasing diffusion of automation technology has important consequences for firms and their workers.

Citation

Bessen, James, Maarten Goos, Anna Salomons, and Wiljan van den Berge. 2020. "Firm-Level Automation: Evidence from the Netherlands." AEA Papers and Proceedings, 110: 389-93. DOI: 10.1257/pandp.20201004

Additional Materials

JEL Classification

  • D22 Firm Behavior: Empirical Analysis
  • D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity
  • L60 Industry Studies: Manufacturing: General
  • L80 Industry Studies: Services: General
  • O32 Management of Technological Innovation and R&D
  • D22 Firm Behavior: Empirical Analysis