| Author Name | ADACHI Daisuke (Fellow (Specially Appointed), RIETI) / KAWAGUCHI Daiji (Faculty Fellow, RIETI) / SAITO Yukiko (Senior Fellow (Specially Appointed), RIETI) |
|---|---|
| Creation Date/NO. | April 2024 24-E-047 |
| Research Project | Empirical Analysis on Japanese Labor Market |
| Download / Links |
Abstract
We study the effect of a tax policy on adopting industrial robots and firm performance, notably in terms of employment. Combining the policy variation in the Tax Credit for Promoting Productivity-Enhancing Equipment Investment (TC-PPEI) in Japan and newly collected Japanese firm-level longitudinal data on robot adoption, we find that the firms eligible for the TC-PPEI increased the adoption of robots. Our event-study analysis reveals that when firms adopt robots, they do not decrease the total number of workers but significantly increase employment after 1-3 years of adoption events and sales. Our results suggest that adopting robots can create employment instead of destroying it at the firm level.
