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Automated Counterflow Centrifugal System for Small-Scale Cell Processing
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Automation and sectoral reallocation.

Dennis C Hutschenreiter1, Tommaso Santini1, Eugenia Vella2

  • 1Universitat Autònoma de Barcelona and Barcelona GSE, Barcelona, Spain.

Series : Journal of the Spanish Economic Association
|August 4, 2021
PubMed
Summary

Industrial robot adoption shifts jobs from manufacturing to services but keeps total employment stable. A general equilibrium model explains this reallocation due to automation and sector complementarity.

Keywords:
AutomationManufacturingMatching frictionsParticipationProductivitySectoral reallocationServicesVacancy creation

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Area of Science:

  • Economics
  • Labor Economics
  • Technological Change

Background:

  • Empirical studies show industrial robot adoption causes sectoral employment shifts.
  • Previous research suggests total employment remains largely unaffected by automation.

Purpose of the Study:

  • To develop a general equilibrium model explaining employment reallocation due to industrial robot adoption.
  • To rationalize observed shifts from manufacturing to services and their impact on total employment.

Main Methods:

  • A two-sector general equilibrium model with matching frictions and endogenous participation.
  • Analysis of steady-state equilibria to understand long-term effects.
  • Calibration to replicate German employment trends (1994-2014).

Main Results:

  • Automation reduces manufacturing vacancies and job search, leading to employment reallocation.
  • Service sector expansion is driven by production complementarities and wealth effects.
  • Model confirms that service sector growth can offset manufacturing job losses, maintaining total employment.

Conclusions:

  • Industrial robots induce a sectoral employment shift from manufacturing to services.
  • The general equilibrium model successfully explains the observed reallocation and its impact on total employment.
  • The findings align with German labor market dynamics between 1994 and 2014.