MIT: For every additional robot in American manufacturing, it replaces 3.3 workers

Recently, a study released by the Massachusetts Institute of Technology and Boston University showed that from 1990 to 2007, every 1,000 American workers increased by 1 robot, the national employment ratio fell by 0.2%, and the wages of workers decreased by 0.42%.

This means that for every additional robot in US manufacturing, an average of 3.3 workers will be replaced.

The above study, titled “Robots and Jobs: Evidence from US Labor Markets,” was completed in collaboration between Daron Acemoglu, a professor of economics at MIT, and Pascual Restrepo, an assistant professor at Boston University. The research paper was published in the Journal of Political Economy.

Reference:

https://www.journals.uchicago.edu/doi/full/10.1086/705716

1 thought on “MIT: For every additional robot in American manufacturing, it replaces 3.3 workers

  1. I think it is a very difficult time to be a factory type worker when we consider all of the automation that is being created now. When reading your post I started to think about why people would switch to robots to do work and it has to be because of cost. This then got me thinking on the political notion of raising the minimum wage.

    I don’t really know how I stand on the whole raising the minimum wage talking point. I think it is very difficult thing to come to a conclusion about because if we raise the minimum wage any higher it might be cheaper to then just automate the job with a robot.

    It’s scary to think humans can just be replaced with robots because of money. But, it is a future we need to address and start thinking about.
    Source:
    https://reason.com/2019/02/26/minimum-wage-boosts-are-greatfor-robots/

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