Report - How Robots Change the World_watermark

We converted this into the average impact of one additional robot on the number of jobs using the average robots per capita ratio across regions. Using these results, we find that a 1-unit increase in robot stock reduces the number of jobs by 1.3 in the short run and 1.6 in the long run across all regions. The impact is lower in high-skilled regions and higher in low-skilled regions. (Table A1)

Model 2: Local labour productivity

Our preferred specification for estimating the productivity impact of robotization implies that a 1% increase in robot stock leads to a 0.1% increase in productivity in the shortterm and a 0.3% increase in productivity in the long-term. Due to the range of factors influencing the productivity impact in a longterm timeframe, we use the short-term impact as a basis for our analysis.

Table A2: Change in productivity (GVA per worker) due to a 1% increase in robots

COMPARISONS

Table A3 presents a comparison of our results with previous academic literature. All results regarding the employment effect have been converted into the change in number of jobs due to one additional robot. Our results are the same sign but slightly lower than other studies, which find the impact of one robot displaces between 3 to 6 jobs depending on the sector, time period and country covered. Graetz and Michaels (2015) and Dauth et al (2017) also find that an increase in robots increases productivity.

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June 2019

All data shown in tables and charts are Oxford Economics’ own data, except where otherwise stated and cited in footnotes, and are copyright © Oxford Economics Ltd.

This report is confidential and may not be published or distributed without the prior written permission of Oxford Economics Ltd.

The modelling and results presented here are based on information provided by third parties, upon which Oxford Economics has relied in producing its report and forecasts in

good faith. Any subsequent revision or update of those data will affect the assessments and projections shown.

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The image on page 2 is by Field Robotics, and all other images in this report are by Shutterstock (www.shutterstock.com).