Automation and the jobs of young workers

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New automation technologies affect workers in a heterogeneous manner according to their demographic characteristics, skills, and the tasks they perform. In this paper we study the effects of automation on labor market outcomes in a developing country, Chile. We focus our analysis on the heterogeneous impacts of automation across cohorts. Does automation affect young workers differently than older workers? Do young workers tend to perform routine tasks? Are young workers in routine occupations more exposed to negative effects of technology? Our empirical strategy is based on exploiting differences in the routinization of tasks across districts and occupations and a change in the trend of automation technology adoption in Chile. We find that young workers are more easily displaced by automation than older workers of similar characteristics. At the same time, cohorts of young workers are more skilled and more mobile than older workers, which implies that they have good prospects of working in complement with automation technology in the near future. The young and unskilled are the most vulnerable group of workers.

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This study considers the relationship between the recent technological advancements in robotics and three key economic factors which arguably define labour market well-being: wages, productivity, and labour share. Given these advancements, many forecasts have been made regarding the repercussions of technological adoption for the labour market. However, we rely on empirical evidence to examine these phenomena and project the future trajectory. By developing a theoretical model and using data on robot adoption from six European economies that implemented minimum wage in the 21st century, this study analyses the effects of minimum wage policies on robot adoption and, in turn, the impact of robot adoption on productivity and labour share. Our findings suggest that the implementation of minimum wage policies is associated with an increase in robot installations, which, subsequently results in higher productivity and a greater labour share of income.

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Intergenerational conflict occurs commonly in the workplace because of age-related differences in work attitudes and values. This study aimed to advance the current literature on aging and work by examining whether younger and older workers differ in their visual attention, emotional responses, and conflict strategies when observing hypothetical conflict vignettes involving a coworker from a similar or dissimilar age group. The indirect effect of age group on emotional responses and conflict strategies through visual fixation on conflict scenes was also examined. Utilizing eye tracking, the visual attention of younger and older workers while watching two hypothetical workplace task conflict videos was recorded and compared. The participants were also asked to imagine how they would respond if they were the main actor in the vignettes. A total of 94 working adults, including 48 younger workers and 46 older workers, participated in the eye tracking experiment. Older workers reported fewer negative and more positive emotions than their younger counterparts after watching the conflict videos, particularly those on the non-intergenerational conflict. Younger workers used more dominating in the intergenerational conflict than in the non-intergenerational conflict; such discrepancy between conflict types was relatively small in older workers. Compared with younger workers, older workers fixated significantly less on the coworker during the intergenerational conflict scenes. A significant indirect effect of age group through visual fixation on the coworker was observed for positive emotions and avoiding. Results revealed that older workers may regulate their emotional reactions and conflict strategies to workplace conflicts by reducing their attention to negative stimuli.

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