Technology and task changes in the major EU countries

Abstract

Drawing on the Acemoglu-Restrepo framework, this article investigates the influence of technological innovations on the wage bill of France, Germany, Italy and Spain We show that in these countries: (a) the wage-bill deceleration since the 1990s has mainly been productivity driven; (b) but was also affected by a wage-share compression; (c) contraction of labor-intensive tasks played a relevant role in such compression; (d) this reflected an acceleration of technology-induced labor displacement not sufficiently offset by the reinstatement of new labor-intensive tasks; (e) labor displacement was higher in low-end services. Econometric analysis of displacement confirms the influence of technology.

Robots and Wages: A Meta-Analysis1

“…It is often conjectured that negative effects of robot adoption may be more prevailing in countries with more flexible labor markets where firms can more easily lay off employees, e.g. leading to a dichotomy between the US and Europe (Leigh et al, 2020, Nardis andParente, 2022). This meta-study contributes to this discussion by applying rigorous econometric analysis instead of relying on vote counting.…”

Risks to job quality from digital technologies: Are industrial relations in Europe ready for the challenge?

“…Digital technologies also facilitate closer worker surveillance, thereby lowering the efficiency wages required to ensure effort compliance (Acemoglu, 2021). De Nardis and Parente (2022) list several studies with varied implications for wages, and their own evidence covering France, Germany, Italy and Spain suggests a negative association, as does the evidence on robotisation in the US (Acemoglu and Restrepo, 2020).…”