David Klenert, Enrique Fernández-Macías, José-Ignacio Antón, 24 February 2020

Opinion polls reveal that Europeans are greatly concerned about the economic consequences of advanced technologies, but our understanding of this relationship is still incomplete. This column assesses the impact of one such technology – industrial robots – on employment in Europe over the last two decades. Combining industry-level data on employment with data on robot adoption, it finds that robot use is linked to a small but significant increase in employment. Contrary to some previous studies, it does not find evidence of robots reducing the share of low-skill workers across Europe.

Pierre Cahuc, Franck Malherbet, Julien Prat, 11 June 2019

Standard economic models predict that employment protection legislation reduces both job destruction and job creation, with the negative impact on job creation caused by the anticipation of separation costs. This column shows that in France, this anticipation effect not only plays a key role in reducing job creation but also increases job destruction among low-skilled workers, an effect that is amplified by the presence of the minimum wage. This mechanism implies that job protection is strongly detrimental to employment in the French context.

Liu Yang, Bin Ni, 21 May 2019

Concerns have been raised that outward foreign direct investment may reduce domestic employment and lead to the ‘hollowing-out’ of the manufacturing industries at home. This column uses a unique dataset of Japanese firms’ overseas activities to show that going abroad does not necessarily lead to a reduction of domestic employment. Investment by Japanese firms into other Asian countries has a positive impact on domestic job creation and a negative impact on job destruction, whereas the impact of investment into European and North American countries is negative for both job creation and destruction in Japan.

CEPR Policy Research