Whether machines will take our jobs away is not a new concern, tracing back, at least, to about 200 years ago. Still, we have not observed significant decline in labor share to date. With significant progresses in artificial intelligence and algorithms in machine learning, however, this concern is now becoming an ever-growing fear. Reflecting society's anxiety about the future and desire to understand the consequences of robotization, academics are tackling this issue from theoretical as well as empirical angles. There is a vast literature discussing possible future scenarios in a hypothetical world that employs the dynamic general equilibrium model. On the other hand, there exist only a few empirical studies on the effects of robotization on labor to date. In addition, the reported results from previous empirical studies are mixed. In this project, we investigate how the intensive use of robots have altered the labor market and the macro economy, and vice versa using a new dataset and empirical strategies not employed in previous studies.
December 16, 2019 - November 30, 2021