Robots, Employment and Wages: Evidence from Turkish Labor Markets
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Abstract
This paper investigates how robotization affects local- and worker-level labor market outcomes in Turkey for 2014-2021. We estimate shift-share specifications, instrumenting Turkish industry-level robot adoption with the same indicator in eight leading European countries, utilising a combined dataset of administrative employer-employee data and industry-level robot stocks. Contrary to evidence from advanced economies, we find positive effects of robot exposure on district-level employment growth, concentrated in manufacturing and driven by the automotive industry. This pattern is consistent with the theoretical insight that the labor market effects of automation depend on an economy's position relative to the global productivity frontier. We complement the local-level analysis with an intensive-margin, worker-level exercise that tracks the 2014 manufacturing-worker cohort through 2021. The results reveal that incumbent workers in more-exposed industries experience a reduction in cumulative workdays at their original plants and are unlikely to transition outside manufacturing. The aggregate employment gains, therefore, accrue through firm expansion and new worker entry rather than through intensive-margin expansion of the incumbent workforce.
JEL Classification: J23, J24
Keywords: Robots; Employment; Wages; Automation; Turkish labor markets
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