Digitization-Based Automation and Occupational Dynamics

17 Pages Posted: 28 Jul 2020 Last revised: 25 Aug 2020

See all articles by Malin Gardberg

Malin Gardberg

Research Institute of Industrial Economics (IFN)

Fredrik Heyman

Research Institute of Industrial Economics (IFN)

Pehr-Johan Norbäck

Research Institute of Industrial Economics (IFN)

Lars Persson

Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research (CEPR)

Date Written: September 12, 2019

Abstract

We examine the relationship between occupational automation probabilities and employment dynamics over nearly two decades. We show that employment and wage shares of occupations with a higher automation risk have declined in Sweden over the period 1996-2013. This has occurred both in the aggregate private business sector but also within firms, where the wage share changes have been larger than the employment share changes. Combining the automation risk in workers’ occupations with individual worker characteristics, we find substantial heterogeneity. This includes that education dampens the automation risk of workers, as the average automation probability of low-skilled workers is almost twice as high as of university graduates. Employment shares in high-risk occupations have moreover declined across all wage levels, and most so in high-wage occupations.

Keywords: Automation, Digitization, Employment shares, Wage shares

JEL Classification: J31, J62, O33

Suggested Citation

Gardberg, Malin and Heyman, Fredrik and Norbäck, Pehr-Johan and Persson, Lars, Digitization-Based Automation and Occupational Dynamics (September 12, 2019). Economics Letters, Vol. 189, 2020, IFN Working Paper No. 1299, 2019, Available at SSRN: https://ssrn.com/abstract=3641303 or http://dx.doi.org/10.2139/ssrn.3641303

Malin Gardberg (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Fredrik Heyman

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

HOME PAGE: http://https://www.ifn.se/eng/people/research-faculty/fredrikh_1

Pehr-Johan Norbäck

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Lars Persson

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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