Are Robots Replacing Routine Jobs

Abstract

This paper explores whether occupations involving routine tasks are more susceptible to replacement by automation. Using a recent dataset on industrial robots and occupational task profiles, I examine how increases in robot intensities within an industry affect workers in routine occupations. I find that routine production workers, along with routine workers with low and medium education experience significantly decreased wages and employment with an increase in robot intensity. For the most routine occupations, a unit increase in robots per thousand workers results in over 0.2 percentage points decline in real hourly wage. Surprisingly, I find no employment or wage gains in workers with high education. The results suggest that robot automation impact may be localized around certain occupational and educational groups, with other workers insulated from robot impact.