Computerization and Occupational Change: Assessing the Impact of Automation on Racial and Gender Employment Densities

Abstract

The current wave of technological change is driven by automation, the process of using computers to improve the labor process, viz., increasing the quantity and quality of work “by means of computer-controlled equipment.” Automation has had and will continue to have heterogeneous economic effects across alternative social groups—altering racial and gender inequality. This study empirically examines the relationship between the racial and gender density of occupations and the probability of automation of both minor and broad occupations. Regression analysis is used to uncover correlations between future employment change and the current racial and ethnic composition of occupations, alerting us to whether future employment growth will have a negative or positive association with occupations where each racial group of workers is currently concentrated. Increases in automation are correlated with increases in labor income inequality and increases in racial and gender employment differences. Male jobs may suffer more technological unemployment than female jobs. Specifically, within each racial group high density male jobs have a greater probability of automation (and lower probability of future demand) than high density female jobs. High density White female jobs appear to be most complementary to automation, while the high density occupations of racial minority men appear to be least complementary to automation.