Surfing the Waves of Digital Automation in Spanish Labor Market

Abstract

The emerging technologies based on artificial intelligence and robotics are challenging the landscape for human labor. Revolution 4.0 is progressively questioning some business models, changing the balance between creation and destruction of jobs, accelerating the transformation of occupational and skills requirements and affecting the distribution of income, because these technologies can replace both manual and cognitive skills. Our research analyzes how digital revolution is affecting labor market in Spain. We mainly focus on the new employment created since the outbreak of the recent financial crisis. We confirm a skill-biased technological change, although the new occupations are mostly demanding a limited set of complex skills. This is a consequence of the routine task-intensive economic structure in Spain. Although digital technologies are inciting a task-biased technological change, decreasing the demand for workers performing routine tasks, this is not the case in Spain. The predominance of routine (but not repetitive) tasks in many services linked to serving, attending, health and care is limiting the scope of automation. The immediate consequence is a growing polarization in employment opportunities and incomes. In addition, a progressive de-skilling effect is emerging, with high-skilled workers moving down the occupational ladder, whereas the wage premium is declining.