New Publication by Franziska Brall and Ramona Schmid in LABOUR [30.01.23]
"Automation, robots and wage inequality in Germany: A decomposition analysis", published November 14, 2022 in LABOUR
Picture: IStock
In their paper, Franziska Brall and Ramona Schmid conduct a decomposition analysis based on recentred influence function (RIF) regressions to disentangle the relative importance of automation and robotization for wage inequality in the manufacturing sector in Germany between 1996 and 2017. The authors implement a new measure of automation threat that combines occupation-specific scores of automation risk with sector-specific robot densities.
Franziska Brall and Ramona Schmid find that besides changes in the composition of individual characteristics, structural shifts among different automation threat groups are a non-negligible factor associated with wage inequality between 1996 and 2017. Moreover, the increase in wage dispersion among the different automation threat groups has contributed significantly to higher wage inequality in the 1990s and 2000s.
