Robots, offshoring, and welfare

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• dc.contributor.author Bonfiglioli, Alessandra
• dc.contributor.author Crinò, Rosario
• dc.contributor.author Gancia, Gino
• dc.contributor.author Papadakis, Ioannis
• dc.date.accessioned 2025-03-21T08:34:15Z
• dc.date.available 2025-03-21T08:34:15Z
• dc.date.issued 2022
• dc.description.abstract We study the effect of industrial robots in the presence of offshoring. A simple model shows that if robots displace foreign-sourced tasks, automation is necessarily welfare-improving for the domestic economy. If instead robots displace domestically-produced tasks, automation can lower domestic welfare through a deterioration of the terms of trade, even when beneficial in autarky. These results underscore the importance of identifying which workers are in more direct competition with automation. Using data on imports of industrial robots and exploiting variation across industries, occupations and local labor markets, we find that automation displaces US workers, but that its effect is weaker in commuting zones that are more exposed to offshoring. Industrial robots also lower the incidence of offshoring and their negative employment effects are concentrated in non-offshorable occupations. These results are consistent with the view that automation contributes to the reshoring of economic activity, which in turn tends to mitigate any adverse labor market effects for US workers.
• dc.format.mimetype application/pdf
• dc.identifier.citation Bonfiglioli A, Crinò R, Gancia G, Papadakis I. Robots, offshoring, and welfare. In: Ing LY, Grossman GM, editors. Robots and AI: a new economic era. 1st ed. London: Routledge; 2022. p. 40-81.
• dc.identifier.doi http://dx.doi.org/10.4324/9781003275534-3
• dc.identifier.uri http://hdl.handle.net/10230/69988
• dc.language.iso eng
• dc.publisher Taylor & Francis (Routledge)
• dc.relation.ispartof Ing LY, Grossman GM, editors. Robots and AI: a new economic era. 1st ed. London: Routledge; 2022. p. 40-81
• dc.rights Open Access: This content is Open Access under the Creative Commons license CC BY-NC-ND.
• dc.rights.accessRights info:eu-repo/semantics/openAccess
• dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/4.0/
• dc.subject.other Robòtica
• dc.subject.other Automatització
• dc.subject.other Deslocalitzacions (Economia)
• dc.title Robots, offshoring, and welfare
• dc.type info:eu-repo/semantics/bookPart
• dc.type.version info:eu-repo/semantics/publishedVersion