Please join us for an Economics Department Research Seminar Series event:

Tuesday, May 16th, 2023

Department of Economics

Presenter: Dario Pozzoli  - Copenhagen Business School

Title: Robots and Immigration

Time: 12:30-1:30 PM EST

Location: RBC 111 (Dean's Boardroom)

Abstract: The supply of low-skill labor can have a significant impact on firms' adoption of robots. This paper tests this hypothesis by exploiting an increase in the supply of low-skill labor caused by exogenous immigration into Danish municipalities. Using the Danish employer-employee matched dataset from 1995 to 2019, we demonstrate in a shift-share regression that municipalities with a higher proportion of migrants have fewer imports of robots at the firm-level. We rationalize this finding through a simple model of robot adoption, in which robots and low-skill workers are substitutes. As many advanced economies are facing labor shortages, this paper provides valuable insights into the future of robotization.