Automatic reaction: what happens to workers at firms that automate?

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We provide the first estimate of the impacts of automation on individual workers by combining Dutch micro-data with a direct measure of automation expenditures covering firms in all private non-financial industries over 2000-2016. Using an event study differences-indifferences design, we find that automation at the firm increases the probability of workers separating from their employers and decreases days worked, leading to a 5-year cumulative wage income loss of about 8 per cent of one year's earnings for incumbent workers. We find little change in wage rates. Further, lost wage...  [+] Show more

Subjects: Employment; Technology; Income

Keywords: Technological change; Employees; Displaced worker; Redundancy; Wage rate; Unemployment; Private sector; Trend

Geographic subjects: Netherlands; Europe

Published: The Hague, Netherlands: CPB Netherlands Bureau for Economic Policy Analysis, 2019

Physical description: 61 p.

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Also called: What happens to workers at firms that automate

Series: CPB discussion paper; no. 390, February 14, 2019

Resource type: Discussion paper

Call number: TD/TNC 138.120

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