Categories: ECONOMY

Minimum wage hikes and robots


This paper studies how minimum wage policy affects firms’ adoption of automation technologies. Using both state-level measures of robot exposure and novel plant-level data on industrial robot imports linked to U.S. Census microdata from 1992-2021, we show that increases in minimum wages raise the likelihood of robot adoption in manufacturing. Our preferred identification exploits discontinuities at state borders, comparing otherwise similar firms exposed to different wage floors. Across specifications, a 10 percent increase in the minimum wage increases robot adoption by roughly 8 percent relative to the mean.

That is from Erik Brynjolfsson, et.al., including Andrew Wang.  Via the excellent Kevin Lewis.

By the way, a photo from our textbook Modern Principles of Economics:

The post Minimum wage hikes and robots appeared first on Marginal REVOLUTION.



Source link

Mainedigitalnews.com

Share
Published by
Mainedigitalnews.com

Recent Posts

ISO 9001 vs ISO 14001 vs ISO 45001: Key Differences Explained

Companies often talk about "ISO standards" to show they have their act together.  It is…

33 minutes ago

10 Key Reasons ISO 14001 Is Important for Every Industry

Environmental responsibility is no longer confined to a few sectors or large corporations. From manufacturing…

39 minutes ago

7 Signs It May Be Time to Renovate Your Pool

A backyard pool can be one of the best parts of a home. It gives…

2 hours ago

Apex Virtual Education unveils a mobile app for Android Users

London, United Kingdom Jun 5, 2026 (Issuewire.com)  - Apex Virtual Education, a prominent eLearning platform…

3 hours ago

GB Motors

Website: https://thegbmotors.com/Phone: (945) 954-1142 Drivers looking for dealership-level expertise without dealership pricing choose GB Motors for…

3 hours ago