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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 35, No. 3, pp.207-240
ISSN: 1225-0279 (Print)
Print publication date 31 Aug 2022
Received 29 Jun 2022 Revised 07 Aug 2022 Accepted 08 Aug 2022
DOI: https://doi.org/10.22904/sje.2022.35.3.001

Robotization and Labor Supply in the Context of a Dynamic Monopsony: Novel Evidence from South Korea

Ahmed J. Saade ; Constantinos Alexiou ; Yacine Belghitar
Ahmed J. Saade, University College London, Department of Economics and Cranfield School of Management, Cranfield University, UK
Constantinos Alexiou, (Corresponding Author), Cranfield School of Management, Cranfield University, UK constantinos.alexiou@cranfield.ac.uk
Yacine Belghitar, Cranfield School of Management, Cranfield University, UK

JEL Classification: J2, J3, J42

Abstract

We estimate the effects of robotization on labor supply in Manufacturing, Services and the whole of the South Korean economy using exponential hazard and a random effects logit methodologies over the period 1999-2019. Our findings suggest that a larger operational stock of industrial robots in manufacturing is associated with manufacturing (non-manufacturing) workers becoming more (less) responsive to a change in wages in their decision to quit to non-employment, whilst the ease with which firms can poach workers is found to be unaffected by robotization.

Keywords:

Automation, Dynamic monopsony, Elasticity of labor supply, Industrial robots, Labor share, South Korea

Acknowledgments

Declaration of interest statement: The authors report there are no competing interests to declare.

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