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<p>This paper explores the heterogeneous effects of automation technologies on employment rate across US regions from different income groups, and investigates mechanisms through proportion of skilled workers. Automation, measured by both robotic penetration and ICT trade volumes, is replacing labour force. Exploiting variations across US commuting zones, this study finds that employment reductions are significant and substantial in low and middle income areas, and rising income levels could cause insignificant employment responses. Leveraging shift-share IV strategies and generalised model specifications, further evidence suggests that a simple net job creation channel can explain these patterns. Specifically, displacement effects outweigh productivity effects in low income CZs with lower proportion of skilled labour, and job losses are larger in middle income CZs with concentration of routine occupations; job creations are complementing job destructions with growing income levels and higher skill shares. These technical changes are particularly significant in manufacturing sectors.</p>

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Automation, skill and job creation

  • 期刊论文

  • 发表日期：

    2026年5月2日

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  • Kaizhao Guo

摘要

This paper explores the heterogeneous effects of automation technologies on employment rate across US regions from different income groups, and investigates mechanisms through proportion of skilled workers. Automation, measured by both robotic penetration and ICT trade volumes, is replacing labour force. Exploiting variations across US commuting zones, this study finds that employment reductions are significant and substantial in low and middle income areas, and rising income levels could cause insignificant employment responses. Leveraging shift-share IV strategies and generalised model specifications, further evidence suggests that a simple net job creation channel can explain these patterns. Specifically, displacement effects outweigh productivity effects in low income CZs with lower proportion of skilled labour, and job losses are larger in middle income CZs with concentration of routine occupations; job creations are complementing job destructions with growing income levels and higher skill shares. These technical changes are particularly significant in manufacturing sectors.