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

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dc.contributor.authorArtuc, Erhan
dc.contributor.authorChristiaensen, Luc
dc.contributor.authorWinkler, Hernan
dc.date.accessioned2019-02-14T19:12:23Z
dc.date.available2019-02-14T19:12:23Z
dc.date.issued2019-02
dc.description.abstractFollowing 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.identifierhttp://documents.worldbank.org/curated/en/221101550152344701/Does-Automation-in-Rich-Countries-Hurt-Developing-Ones-Evidence-from-the-U-S-and-Mexico
dc.identifier.doi10.1596/1813-9450-8741
dc.identifier.urihttps://hdl.handle.net/10986/31279
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8741
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectOFFSHORING
dc.subjectEXPORT COMPETITIVENESS
dc.subjectLABOR MARKET
dc.subjectAUTOMATION
dc.subjectEMPLOYMENT
dc.subjectTRADE
dc.titleDoes Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexicoen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleDoes Automation in Rich Countries Hurt Developing Ones?: Evidence from the U.S. and Mexico
okr.date.disclosure2019-02-14
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/221101550152344701/Does-Automation-in-Rich-Countries-Hurt-Developing-Ones-Evidence-from-the-U-S-and-Mexico
okr.guid221101550152344701
okr.identifier.doi10.1596/1813-9450-8741
okr.identifier.externaldocumentum090224b08697d1dc_1_0
okr.identifier.internaldocumentum30834024
okr.identifier.reportWPS8741
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/221101550152344701/pdf/WPS8741.pdfen
okr.region.administrativeLatin America and Caribbean
okr.region.countryMexico
okr.region.countryUnited States
okr.statistics.combined4000
okr.statistics.dr221101550152344701
okr.statistics.drstats2648
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicInternational Economics and Trade::Foreign Direct Investment
okr.topicInternational Economics and Trade::Trade and Labor
okr.topicScience and Technology Development::Technology Innovation
okr.topicSocial Protections and Labor::Labor Markets
okr.unitSocial Protection and Jobs Global Practice and the Development Research Group
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