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Robot Effects on Worker's Compensation Benefits.

¹Department of Economics, Pukyong National University, Busan, Korea.

Health Economics

|August 27, 2025

Summary

Increased robot use in South Korea significantly lowers workplace injury benefits. This reduction stems primarily from fewer claims, particularly for severe injuries like permanent disability.

Area of Science:

Occupational Safety and Health
Economics of Technology
Labor Economics

Background:

Workplace safety is a critical concern in industrialized nations.
The increasing integration of robotics in various industries raises questions about its impact on worker safety and compensation.
South Korea has one of the highest robot densities globally, making it an ideal case study.

Purpose of the Study:

To investigate the causal relationship between robot adoption and workplace injury benefit payments.
To quantify the impact of robot exposure on the average benefit amount per worker.
To identify the primary drivers behind changes in benefit payouts.

Main Methods:

Utilized administrative data from South Korea's worker's compensation system.

Keywords:

South Korea robots worker’s compensation

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Employed econometric analysis to assess the effect of robot exposure on injury claims and benefit amounts.

Differentiated between the number of claims and the size of individual claims.

Main Results:

A significant decline in the average worker's compensation benefit amount was observed with increased robot exposure.
The reduction in benefits was predominantly driven by a decrease in the total number of injury claims filed.
The impact of robots on reducing benefit payouts was more pronounced for serious injury cases, including permanent disabilities.

Conclusions:

Robot adoption in the workplace is associated with improved safety outcomes, leading to fewer injury claims.
The findings suggest that robots may be mitigating workplace hazards, thereby reducing the financial burden of injury compensation.
Policy implications may include encouraging further safe integration of robots to enhance worker well-being and reduce compensation costs.