2019
DOI: 10.2139/ssrn.3508783
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Automating Labor: Evidence From Firm-Level Patent Data

Abstract: Do higher wages lead to more automation innovation? To answer this question, we first introduce a new measure of automation by using the frequency of certain keywords in patent text to identify automation innovations in machinery. We validate our measure by showing that it is correlated with a reduction in routine tasks in a cross-sectoral analysis in the US. Then we build a firm-level panel dataset on automation patents. We combine macroeconomic data from 41 countries and information on geographical patent hi… Show more

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Cited by 27 publications
(26 citation statements)
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References 38 publications
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“…With an average annual inflow rate of about 22.8 ethnic Germans per 1,000 manual and unskilled workers during the binding allocation period, the total reduction of automation patents of about 1.1 patents is economically meaningful. While these estimates are not directly comparable to other studies, we confirm Dechezleprêtre et al (2019) and San (2019) in concluding that automation innovation is quite responsive to changes in labor supply.…”
Section: Resultscontrasting
confidence: 82%
See 2 more Smart Citations
“…With an average annual inflow rate of about 22.8 ethnic Germans per 1,000 manual and unskilled workers during the binding allocation period, the total reduction of automation patents of about 1.1 patents is economically meaningful. While these estimates are not directly comparable to other studies, we confirm Dechezleprêtre et al (2019) and San (2019) in concluding that automation innovation is quite responsive to changes in labor supply.…”
Section: Resultscontrasting
confidence: 82%
“…While the recent literature has successfully applied keyword search in patent texts (see e.g., Dechezleprêtre et al, 2019;Webb, 2019), the choice of relevant keywords can be disputed. Therefore, we examine the sensitivity of our findings to using three alternative keyword based measures of automation innovation (Table B-8).…”
Section: Alternative Measures Of Automation Innovationmentioning
confidence: 99%
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“…We are currently working to this. Another avenue of research is to investigate how labor market characteristics can affect the nature of innovation, for example, whether the innovation is aimed at automation or the creation of new product lines.The former idea is explored in current work by the present authors, and the latter is explored in recent work by Dechezleprêtre et al (2019).…”
Section: * * *mentioning
confidence: 95%
“…15 These simple comparative statics still hold when both automation and capital accumulation are endogenous. For instance, Acemoglu et al (2015), Acemoglu and Restrepo (2017), Hémous and Olsen (2018) and Dechezleprêtre et al (2019) show how to make κj a choice variable. Bonfiglioli et al (2019) endogenize both κj and Kj, and derive conditions under which employment is a hump-shaped function of automation.…”
Section: A Simple Model Of Workers Machines and Tasksmentioning
confidence: 99%