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Title: Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico

Citation Type: Working Paper

Publication Year: 2019

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Abstract: There is a growing body of literature on the impacts of labor-replacing technologies. Most of this literature is focused on developed economies, since they are at the frontier of adoption of new technologies, and concerns are rising about the negative impacts on workers. The findings of this empirical literature show that while these technologies can bring about significant efficiency gains (Graetz & Michaels 2017), they can also have negative impacts on employment outcomes (Acemoglu & Restrepo 2017). However, evidence for developing countries is scarce. This is driven not only by data constraints, but also because poorer countries in general have not been as successful as their richer counterparts at adopting new technologies at such a large scale. This article argues that developing countries can still experience some disruptive effects by being exposed to automation in developed economies. For example, automation in the US may reduce the demand for Mexican goods if it allows to reduce marginal . . .

Url: http://documents.worldbank.org/curated/en/221101550152344701/pdf/WPS8741.pdf

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Authors: Artuc, Erhan; Christiaensen, Luc; Winkler, Hernan

Series Title: Policy Research Working Paper

Publication Number: 8741

Institution: World Bank Group

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Publisher Location: Washington, DC

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

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