“…First, high levels of labor protection can spur both employees and employers to make complementary investments in human and physical capital, potentially resulting in technological lock-ins that can increase the costs of robot adoption (Milgrom and Roberts, 1990;Aoki, 2001;Antonelli, 2012). Second, to complicate things further, unions can push for robot adoption to increase the safety of the working environment and to ease the physical effort on the part of employees (for the case of blue-collar workers, see Gihleb et al, 2020;Belloc et al, 2020;Caselli et al, 2021). However, if robots displace unskilled and routinary occupations, the increased productivity gap between skilled and unskilled workers may undermine their coalition, reduce the level of unionization, and increase the costs of coordination (Iversen and Soskice, 2020).…”