Robots, Tools, and Jobs: Evidence from Brazilian Labor Markets
CESifo, Munich, 2023
CESifo Working Paper No. 10813
![](https://cesifo.org/DocImg/cesifo1_wp10813.jpg?c=1702038343)
What is the effect of robots and tools on employment and inequality? Using natural language processing and an instrumental variable approach, we discover that robots have led to a sizable decrease in the employment and wages of low-skill workers in operational occupations. However, tools - machines that complement labor – have led to an equally large reinstatement of these workers, increasing their employment and wages. Using a quantitative model, we find that the lower prices of robots and tools over the last 20 years have reduced inequality and increased welfare without a significant effect on employment.
Fiscal Policy, Macroeconomics and Growth
Economics of Digitization