TY  - RPRT
        AU  - Mann, Katja
AU  - Pozzoli, Dario
        TI  - Automation and Low-Skill Labor
        PY  - 2022/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15791
        UR  - https://www.iza.org/publications/dp15791
        AB  - Changes in the supply of low-skill labor may affect robot adoption by firms. We test this hypothesis by exploiting an exogenous increase in the local labor supply induced by a large influx of immigrants into Danish municipalities. Using the Danish employer-employee matched dataset over the period 1995-2019, we show in a shift-share regression that a larger share of migrants in a municipality leads to fewer imports of robots at the firm-level. We rationalize this finding in 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 sheds light on the future of robotization. 
        KW  - labor supply
KW  - immigration
KW  - robots
KW  - shift-share
        ER  -