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

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dc.contributor.author Artuc, Erhan
dc.contributor.author Christiaensen, Luc
dc.contributor.author Winkler, Hernan
dc.date.accessioned 2019-02-14T19:12:23Z
dc.date.accessioned 2019-02-16T00:00:24Z
dc.date.available 2019-02-14T19:12:23Z
dc.date.available 2019-02-16T00:00:24Z
dc.date.issued 2019-02
dc.identifier.uri http://hdl.handle.net/10986/31279
dc.description.abstract Following a couple of decades of offshoring, the fear today is of reshoring. Using administrative data on Mexican exports by municipality, sector and destination from 2004 to 2014, this paper investigates how local labor markets in Mexico that are more exposed to automation in the U.S. through trade fared in exports and employment outcomes. The results show that an increase of one robot per thousand workers in the U.S. -- about twice the increase observed between 2004-2014 -- lowers growth in exports per worker from Mexico to the U.S. by 6.7 percent. Higher exposure to U.S. automation did not affect wage employment, nor manufacturing wage employment overall. Yet, the latter is the result of two counteracting forces. Exposure to U.S. automation reduced manufacturing wage employment in areas where occupations were initially more susceptible to being automated; but exposure increased manufacturing wage employment in other areas. Finally, the analysis also finds negative impacts of exposure to local automation on local labor market outcomes. en
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper;No. 8741
dc.rights CC BY 3.0 IGO
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo
dc.subject OFFSHORING
dc.subject LABOR MARKET
dc.subject AUTOMATION
dc.subject EMPLOYMENT
dc.subject TRADE
dc.title Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico en
dc.type Working Paper en
dc.rights.holder World Bank

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