Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico

Following a couple of decades of offshoring, the fear today is of reshoring. Using administrative data on Mexican exports by municipality, sector and destination from 2004 to 2014, this paper investigates how local labor markets in Mexico that are...

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Main Authors:	Artuc, Erhan, Christiaensen, Luc, Winkler, Hernan
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	OFFSHORING EXPORT COMPETITIVENESS LABOR MARKET AUTOMATION EMPLOYMENT TRADE
Online Access:	http://documents.worldbank.org/curated/en/221101550152344701/Does-Automation-in-Rich-Countries-Hurt-Developing-Ones-Evidence-from-the-U-S-and-Mexico http://hdl.handle.net/10986/31279

id	okr-10986-31279
recordtype	oai_dc
spelling	okr-10986-312792022-09-19T12:16:57Z Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico Artuc, Erhan Christiaensen, Luc Winkler, Hernan OFFSHORING EXPORT COMPETITIVENESS LABOR MARKET AUTOMATION EMPLOYMENT TRADE Following a couple of decades of offshoring, the fear today is of reshoring. Using administrative data on Mexican exports by municipality, sector and destination from 2004 to 2014, this paper investigates how local labor markets in Mexico that are more exposed to automation in the U.S. through trade fared in exports and employment outcomes. The results show that an increase of one robot per thousand workers in the U.S. -- about twice the increase observed between 2004-2014 -- lowers growth in exports per worker from Mexico to the U.S. by 6.7 percent. Higher exposure to U.S. automation did not affect wage employment, nor manufacturing wage employment overall. Yet, the latter is the result of two counteracting forces. Exposure to U.S. automation reduced manufacturing wage employment in areas where occupations were initially more susceptible to being automated; but exposure increased manufacturing wage employment in other areas. Finally, the analysis also finds negative impacts of exposure to local automation on local labor market outcomes. 2019-02-14T19:12:23Z 2019-02-14T19:12:23Z 2019-02 Working Paper http://documents.worldbank.org/curated/en/221101550152344701/Does-Automation-in-Rich-Countries-Hurt-Developing-Ones-Evidence-from-the-U-S-and-Mexico http://hdl.handle.net/10986/31279 English Policy Research Working Paper;No. 8741 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Mexico United States
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	OFFSHORING EXPORT COMPETITIVENESS LABOR MARKET AUTOMATION EMPLOYMENT TRADE
spellingShingle	OFFSHORING EXPORT COMPETITIVENESS LABOR MARKET AUTOMATION EMPLOYMENT TRADE Artuc, Erhan Christiaensen, Luc Winkler, Hernan Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico
geographic_facet	Latin America & Caribbean Mexico United States
relation	Policy Research Working Paper;No. 8741
description	Following a couple of decades of offshoring, the fear today is of reshoring. Using administrative data on Mexican exports by municipality, sector and destination from 2004 to 2014, this paper investigates how local labor markets in Mexico that are more exposed to automation in the U.S. through trade fared in exports and employment outcomes. The results show that an increase of one robot per thousand workers in the U.S. -- about twice the increase observed between 2004-2014 -- lowers growth in exports per worker from Mexico to the U.S. by 6.7 percent. Higher exposure to U.S. automation did not affect wage employment, nor manufacturing wage employment overall. Yet, the latter is the result of two counteracting forces. Exposure to U.S. automation reduced manufacturing wage employment in areas where occupations were initially more susceptible to being automated; but exposure increased manufacturing wage employment in other areas. Finally, the analysis also finds negative impacts of exposure to local automation on local labor market outcomes.
format	Working Paper
author	Artuc, Erhan Christiaensen, Luc Winkler, Hernan
author_facet	Artuc, Erhan Christiaensen, Luc Winkler, Hernan
author_sort	Artuc, Erhan
title	Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico
title_short	Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico
title_full	Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico
title_fullStr	Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico
title_full_unstemmed	Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico
title_sort	does automation in rich countries hurt developing ones? evidence from the u.s. and mexico
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/221101550152344701/Does-Automation-in-Rich-Countries-Hurt-Developing-Ones-Evidence-from-the-U-S-and-Mexico http://hdl.handle.net/10986/31279
_version_	1764473960250998784

Does Automation in Rich Countries Hurt Developing Ones? Evidence from the U.S. and Mexico

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