Automation effect on labor market: Chilean case

Authors

  • Andrés Ignacio Arriagada Carvajal Universidad Alberto Hurtado image/svg+xml

DOI:

https://doi.org/10.4067/S0718-88702023000200003

Keywords:

Automation, job search, human capital, education level

Abstract

This article shows how wages and employability varies according to the educational levels for Chile among labor industries due automation. For this, a DMP search-and-matching model is built introducing automation capital. It is found that the effect of automation is strongly linked to job destruction rate and low task ratio. When automation increases on all educational levels and labor industries, no effect is found on the labor market, existing only when automation increases on a specific educational level. Calibrating to Chilean Data, it is found that increasing in 50% the robotic capital on low educational levels leads to an 1.31% rise on low educational unemployment and 2.65% on the other level. In the other hand, increasing in 50% the robotic capital on high educational levels leads to an 1.95% fall on high educational unemployment and 1.72% on the other level.

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Published

2023-10-31

How to Cite

Arriagada Carvajal, A. I. (2023). Automation effect on labor market: Chilean case. Economic Analysis Review, 38(2), 3–38. https://doi.org/10.4067/S0718-88702023000200003

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