Labor Substitution Research Articles

Digital Transformation of Enterprises and Labor Force Structure Upgrading: Research Progress and Prospect

The transformation of the enterprise digital economy has had a profound effect on the employment of the labor force. Although extant document has discussed the digital economy, there is still a large space for deep analysis and theoretical framework construction of the impact of the digital Economy in Workforce Transformation. This research will look at the intrinsic impact of the digital economy on labor transfer or distribution. Digital capital complements a highly skilled labor force and promotes the upgrading of enterprise labor skill structure; digital transformation mainly affects three aspects: adopting new digital technology, optimizing labor organization form and adjusting business model. Changes of labor force in all respects as a result of the digitalization of business. In the background of the popularization of digital technology, the demand for low-skilled labor rises in the market, which promotes the upgrade of a commodity economy and the pursuit of a higher level of life; Digital transformation promotes the upgrading of enterprise labor skill structure, and different development regions and sizes have distinct differences in labor substitution. The effects of the digital transition can positively affect the innovation of the business model. Based on digitalization, The labor market's iterative renewal will have a decisive impact on the improvement of technology levels and the changing labor force structures.

Explicating the Role of Agricultural Socialized Services on Chemical Fertilizer Use Reduction: Evidence from China Using a Double Machine Learning Model

Reducing chemical usage, particularly chemical fertilizers, is a crucial measure for advancing sustainable agricultural development. This study utilized field survey data from 894 maize farmers across three northeastern provinces of China. A double machine learning modeling framework was established to empirically examine the impact and mechanism of agricultural socialized services on chemical fertilizer use of farm households. The model addresses numerous stringent constraints of conventional causal inference models and effectively mitigates the “curse of dimensionality” issue. Current research indicates that agricultural socialized services can substantially decrease chemical fertilizer use among farmers. Further investigation reveals that these services facilitate this reduction by enhancing the mechanization level, promoting the use of organic fertilizers, and providing a labor substitution effect. The region heterogeneity test indicates that the impact of agricultural socialized services is more pronounced in Liaoning and Heilongjiang provinces geographically. Regarding the heterogeneity analysis of food crop income levels, agricultural socialized services can decrease chemical fertilizer use among farmers more effectively with elevated food crop income levels. Consequently, the findings imply that the socialization of agricultural services has substantial potential to be an effective chemical fertilizer reduction strategy to support the agricultural green transition, which can be enhanced through promoting the degree of mechanization, organic fertilizer application, and labor division and specialization.

Nursing unions: A scoping review of outcomes for employees, patients, and administrators

BackgroundNursing labor organization is consequential to many stakeholders, but collective evidence for outcomes associated with nurse unionization is lacking. PurposeTo synthesize evidence of associations between nursing unions and nurse, patient, and system outcomes. MethodA scoping review. FindingsTwenty-four articles spanning nearly 50 years were abstracted. Most studies (n=16; 67%) included nurse outcomes, usually remuneration (n=10; 42%). Patient and systems outcomes were less common (for each: n=7; 29%). Union wage premiums were modest. Evidence for other nurse outcomes (e.g., job satisfaction, retention) was limited and mixed. Unionization was associated with improvements in many but not all patient outcomes studied, and with operational differences, including decreased staffing and labor substitution. DiscussionCollective bargaining outcomes may help administrators understand nurses’ needs and concerns and thereby improve nurse recruitment and retention. For example, modest wage effects may signal non-wage priorities among nurses, which are understudied and worthy subjects of future research.

How Does AI Affect the Pay Gap Within Firms: Mechanism Analysis Based on Personnel Structure and Corporate Investment

ABSTRACTThis study examines how AI impacts the internal pay gap within enterprises. Using data from listed companies in China and a panel data two‐way fixed effect model, findings reveal that AI widens pay gap, with executives in AI‐applied companies earning 0.327 times more than average employees. AI increases executive pay while hindering employee salary growth, especially in nonmanufacturing and private firms. Labor substitution AI reduces employee compensation growth, whereas labor enhancement AI boosts executive pay without affecting employee compensation. AI also influences personnel structure and enterprise investment in fixed assets and R&D, highlighting its “job substitution effect” and “productivity effect”.

Robots and the corporate immunity–Evidence from the impact of the epidemic in China

ABSTRACT This paper investigates the influence of industrial robots on corporate immunity during the COVID-19 pandemic, utilising data from Chinese manufacturing listed companies between 2017Q1 and 2020Q1. The primary findings indicate that industrial robots can foster immunity to alleviate the adverse effects of the COVID-19 crisis, and this mitigation effect is substantial. The empirical results remain robust after conducting numerous tests and instrumental variable regression. The development of immunity by industrial robots occurs through two mechanisms: labour substitution and enhanced operational efficiency. The immunity effect of industrial robots is more pronounced in state-owned, high-tech firms, and companies severely impacted by the COVID-19 pandemic.

Labor Substitutability among Schooling Groups

Given worldwide trends in education, wage premium for schooling, and real GDP, we derive a lower bound for the long-run elasticity of labor substitution across schooling groups of around 4, which is far higher than values commonly used in the literature. We exploit our bound to reexamine the importance of human capital in cross-country income differences, including the roles of school quality versus the skill bias of technology in the greater efficiency gains from schooling in richer countries. (JEL E23, E24, I26, J24, J31, O15)

Lag Plot: A Novel Method to Determine Viable Bacterial Cell Number via a Single OD Measurement.

Bactericidal activity is a valuable parameter which is considered and measured for antimicrobial compounds. The available standard protocol to evaluate bactericidal activity is based on the direct colony count. Colony counting requires serial dilution, plating, overnight incubation, and direct counting, which is time-and labor-intensive. In regard to eliminate direct plate count, novel techniques were developed based on the real-time growth monitoring which can come with some limitations and drawbacks. These drawbacks encourage us to develop a novel technique with simple procedure to determine viable bacterial cell count. In this procedure, real-time growth monitoring is not required. In fact, after an incubation time, the number of viable bacteria can be determined with a single OD measurement and through an equation. In this regard, four standard bacterial strains, including Staphylococcus aureus (ATCC 25923), Escherichia coli (ATCC 25922), Pseudomonas aeruginosa (ATCC 27853), and Bacillus subtilis (ATCC 23857), were cultured with descending inoculum densities (1.5 × 107 to 15CFU/mL) and growth curves were drawn. As expected, growth in the samples with lower inoculum densities recorded with longer lag phase. Also, a direct relation was observed between the recorded turbidities and initial cell counts. A logarithmic curve (lag plot) was obtained by plotting the OD, after 12-18h incubation, against initial cell counts. In all examined strains, R2 was calculated in the range of 0.96-0.99 which is acceptable value for coefficient of determination. Equation corresponding to the lag plot was obtained and called lag equation. This equation is applicable to calculate the number of viable cells in unknown samples simply by inoculation, incubation, and single OD measurement. Developed technique can be introduced as a simple substitution for labor- and time-intensive direct colony counting.

The financial accelerator, wages, and optimal monetary policy

I study the effects of labor market outcomes on firms' loan demand and credit intermediation. I first show in partial equilibrium that the presence of frictions in the banking sector lowers the capital factor demand elasticity to changes in real wages. This finding helps to connect the substitutability of labor and capital with credit conditions. Second, I use a new Keynesian banking model with an endogenous financial accelerator mechanism to study the role of lower capital factor demand elasticity in the transmission mechanism of monetary policy. Stabilizing nominal wages is close to the optimal monetary policy because it coincides with stabilizing the credit spread, the net worth gap, and the output gap. Inflation stabilization, in turn, imposes a policy trade-off with high welfare costs.

Sources of Endogenous Economic Growth in 83 Russian Regions

According to the theory of endogenous growth, technologies play a key role in economic development. Digital technologies, as innovations that create new innovations, change economic activity and create new opportunities for economic growth. Digitalization helps to reduce specific economic costs, changes the nature of work. It also causes the substitution of labor with capital. The study is devoted to characterizing the features of regional development and evaluate digital predictors of economic growth. We used a sample of data from 83 regions in the period 2009-2019, excluding from the sample years 2020 and 2021 because of changes in economic dynamics under the influence of pandemic shocks. Econometric estimates are obtained using least squares and a feasible generalized least squares method based on unidirectional panel data models. A statistically significant influence of the number of university students, innovation costs on the growth rate of gross regional product per capita was found. The impact of the number of granted patents and the number of Internet users of the organization on the regional development was not confirmed. The results of the study emphasize the necessity of state science and innovation policy to reduce technological inequality, strengthen macroeconomic stability, high level of qualifications and technologies. The direction of further research can be the creation of indicator system measuring the quality of political and economic institutions.

Green taxes: Productivity effects of tax-based environmental regulations on heavily polluting firms

Environmental regulations, particularly tax-based measures, significantly impact firm productivity and corporate behavior. This study uses China's Environmental Protection Tax (EPT) law as a quasi-natural experiment to explore whether and how such tax-based environmental regulations influence the productivity of heavily polluting firms. Using a difference-in-differences approach, we find that the EPT law has positively impacted firm productivity by fostering higher research and development investments and encouraging the substitution of labor with capital. The productivity-enhancing effect is more pronounced for state-owned enterprises, large firms, firms with fewer financial constraints, firms receiving more government subsidies, and firms operating in less competitive sectors. These findings support the Porter hypothesis, suggesting that well-designed environmental regulations can stimulate innovation and improve competitiveness, ultimately enhancing productivity. This study underscores the importance of tax-based environmental regulations in promoting productivity and economic growth, providing valuable insights for policymakers aiming to balance environmental protection with economic development.

Dynamics of automation in economic growth and the labor market

AbstractThis study delves into the intricate dynamics of technology, labor markets, and economic growth within the context of Industry 4.0. By integrating automation capital into a dynamic general equilibrium model, we examine its implications for economic performance and social equity. The empirical analysis highlights the substitutability of unskilled labor by automation, revealing a nuanced relationship between automation adoption, the skill premium, and economic growth. Contrary to conventional wisdom, our findings suggest that a reduced ratio of unskilled to skilled labor, driven by automation, can lead to both an increase in the skill premium and sustained economic growth, even in the face of demographic challenges such as declining populations. However, this trend also exacerbates income inequality, underscoring the imperative for policy interventions aimed at promoting skill enhancement and ensuring equitable distribution of technological advancements.

Producing labour stratification: how migration policies affect the working, living and housing conditions of migrant farmworkers

ABSTRACT Based on a long-term investigation of migrant farmworkers within the Sicilian agricultural districts, this paper aims to use the lens of migratory stratification to scrutinize the various changes that have occurred in the agricultural sector over the past decade. Drawing on ethnographic data from an empirical study conducted on the working and living conditions of migrant farmworkers, this paper will shed light on the economic and social stratification strategies fostered by EU migration policies. In line with the issues addressed in this special issue, the paper analyses how migrant regulatory procedures have resulted in the deterioration of migrant farmworkers’ working, living and housing conditions. Before the so-called ‘refugee crisis’, the stratification of migrant farmworkers was mainly based on country of origin and involved labourers due to different times of arrival and legal status; with the onset of the ‘refugee crisis’, the mechanisms of stratification and labour substitution mainly involved asylum seekers.

Export-Platform FDI: Cannibalization or Complementarity?

We develop a model of export-platform foreign direct investment (FDI) in which final goods are produced only with labor and there are no fixed costs of exporting. We derive a simple condition that determines whether an MNE's plants are substitutes or complements. This condition is shaped by the relative size of (i) the cross-firm elasticity of demand the MNE faces for its goods and (ii) the within-firm elasticity of labor substitution across the MNE's plants. In two extensions of the model, we show that this complementarity is enhanced by firm-level (rather than plant-level) fixed costs of exporting and of sourcing inputs.

Export contraction and input switching in an aging China

Whether an aging China is increasingly losing its low-cost export advantages? More importantly, which type of inputs' dynamics occurs to adapt to the above-mentioned circumstance? Using an instrumental-variable strategy, our empirical analysis finds that population aging leads to a contraction in China's export share since it causes a shortage of middle-aged workers and thereby higher labor cost. We also show that population aging leads to a substitution of labor with capital, but does not promote technology level in the context of China. Moreover, we document that the substitution of labor with capital occurs mainly in the firms with high productivity, large scale, high capital intensity, low credit constraint, high export intensity and private firms.

The impact of artificial intelligence application on enterprise environmental performance: Evidence from microenterprises

The progress of artificial intelligence (AI) technology is an important way to solve the problem of global sustainable development. This paper discusses how AI, as a new scientific force, affects the pollution reduction of enterprises from a micro perspective. In this paper, the robot data provided by the International Federation of Robotics and pollution data of industrial enterprises in China are used for empirical analysis to test the effect of AI on pollution performance of enterprises. The results show that the application of AI can reduce enterprise emissions through technological innovation effect and labor substitution effect, and this result remains robust after sample substitution and variable substitution. Further heterogeneity analysis shows that AI has a more significant impact on enterprises in big cities and southern cities, as well as large enterprises, old enterprises and non-technology-intensive enterprises. The research results of this paper provide an effective reference for solving how to achieve green and sustainable development of artificial intelligence applications.

Wege aus der Wachstumsschwäche

Abstract Germany is experiencing a significant decline in potential output. The main reason is demographic aging and, in particular, the retirement of the baby boomers. The available labour volume is also being exacerbated by low employment rates among older workers and a decline in average working hours. In order to overcome weak growth, it is key to strengthen the economy’s potential output through technological progress and the efficient allocation of resources. This article analyses the development of potential output growth, quantifies possible contributions to overcoming weak growth and concludes by outlining economic policy options. We discuss two areas that are important for strengthening potential growth: mitigating the consequences of demographic aging and increasing investment and innovation. Mitigating the aging effects requires measures to increase labour market participation and the substitution of labour with capital goods where possible. The latter helps to ensure that more workers become available in areas where substitution through automation is more difficult. Increasing investment and innovation is crucial in order to increase productivity, modernise and expand the capital stock and open up new growth areas.

Hybrid Intelligence in Production Systems and Its Effects on Human Work: Insights from Four Use-Cases

Industry 4.0 has initiated a data-driven transformation of production systems. With AI applications capitalizing on the surge of data availability, their introduction is reshaping workplaces and altering work tasks and profiles around the world. As AI-driven automation of work proliferates, so does the potential for the substitution of human labor. Rather than replacing human work, the concept of hybrid intelligence seeks to combine human and artificial intelligence with the effect of increasing productivity of the overall work system. As such, the concept may prove useful to support human-friendly automation of work, i.e., automation that supports human well-being and empowerment. This requires a deeper understanding of the projected effects of different automation solutions on human workers. In this context, this paper examines possible effects of AI applications in production systems based on four use-cases of coating and machining processes, thereby focussing on the changes from the perspective of workers and the resulting human-AI interactions. The potential challenges and opportunities of the workplace transformation are discussed, specifically highlighting possible implications for the workforce.

The impact of the digital revolution on the substitution of labour with capital

Subject. Throughout human history, the development of new technologies has led to an increase in the efficiency of labour, changed its nature and influenced the socio-economic life of people. Currently, the process of the digitalisation of the economy, as well as the distribution of robotics and artificial intelligence technologies, increase interest in scientific research aimed at assessing the impact of these technologies on labour and productivity.Purposes. The purpose of this article was the analysis of the impact of modern technological innovation on labour demand at the macroeconomic level. To achieve these, we considered two key issues: what is the impact of the introduction of new technologies on overall demand and what impact does the integration of new technologies have on the economy.Methodology. In order to achieve the objectives, an analysis of domestic and foreign research in this area was carried out, and approaches to statistical testing of the hypotheses were discussed. General scientific methods were used: analysis, synthesis, comparison, systematisation.Conclusions. Two main approaches to forecasting the impact of new technologies on the labour market have been identified: the capital-labour hypothesis (techno-optimists) and an increase of the technological demand hypothesis (techno-sceptics). It was revealed that statistical testing of the impact of new technologies on aggregate labour demand is not available due to data limitations. It was also noted that these two approaches apply to different time perspectives and are not mutually exclusive. It was found that there are conflicting views on the expected consequences of new technologies for the labour market. Some people believe that technologies will increase skill and income inequality, while others predict that it will reduce inequality and make the digital economy accessible to people with different skills.

Neoclassical production, scarcity of skills and Pareto distributions

The distribution of top earnings follows a “power-law”: the top tail of the distribution is thick relative to other distributions and is approximately Pareto-distributed. There are different mechanisms proposed in the literature that yield Pareto distributions and power-laws. This paper shows that a simple general equilibrium model where aggregate production is assumed of the constant-elasticity-of-substitution (CES) type over multiple labor inputs generates distributions in earnings and wages that follow power-laws. The finding is very general as the distribution of the skill-types is irrelevant for the shape parameter (the Pareto exponent) of the power-law. The model displays a tight relationship between the Pareto exponent and the elasticity of substitution between the labor inputs. Available empirical estimates of the elasticities of labor substitution and of the labor supply predict a Pareto exponent consistent with its empirical counterpart for the distribution of earnings in the US.

Impact of technological progress on the labor market

The article discusses the issues of technological progress impact on labor market in developed countries and Kazakhstan, to what extent the expectations of mass unemployment are justified and what measures are taken by government employment agencies to mitigate transformational risks in the labor market. Scientific works devoted to quantitative assessment of automation and labor substitution have a very controversial methodology. The article presents the results of the analysis of different approaches and methodologies to assess the impact of automation on the labor market: the approach of measuring the routine of occupations based on the tasks included in the occupation, the application of economic models to determine the impact of automation on jobs and occupations, how the level of demand affects specific types of skills; the analysis of the results of extensive surveys is presented. Based on the methodology for assessing the risk of automation, it is determined to what extent certain occupations in Kazakhstan's employment structure are at risk of automation. It is concluded that the increase in unemployment due to automation, robotization and new digital solutions in the labor market of Kazakhstan is significantly lower than in developed countries. The impact of new technologies on the labor market remains relatively small, with the potential for both job losses and job gains. The authors conclude that most pessimistic forecasts are unfounded. However, emerging trends are becoming more and more concrete, requiring proactive measures to be taken in advance to prevent job losses. Digitalization is transforming existing occupations, requiring new skills to perform new tasks. Therefore, further innovation and economic growth depend on the level of human capital development.