Robots, Employment and Wages: Evidence from Turkish Labor Markets at District and Worker Level

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Aytun U., Kılıçaslan Y., Meçik O.

ICE-TEA 2022 The Eighth International Conference on Economics, Nevşehir, Turkey, 1 - 04 September 2022

  • Publication Type: Conference Paper / Summary Text
  • City: Nevşehir
  • Country: Turkey
  • Eskisehir Osmangazi University Affiliated: Yes


In recent years these debates were outpaced due to the widespread usage of robots in various industries. Our aim in this study is to investigate how the robot exposure in Turkey affects labor markets in Turkey. Using novel employer-employee data collecting firm information such as production, wage and trade, and worker information provided by Enterprise Information System (EIS) of Ministry of Industry and Technology, we can isolate other covariates of employment and wages. We will merge it with International Federation of Robotics (IFR) database, which reports number of robots at country and industry level. Firstly we will identify local labor market effects of robot exposure. In this respect we will put forward net effect of robots on employment to population ratio and wages. Moreover, composition effect of employment changes at district level by estimating the effect by main industry groups will be examined. Secondly, how employment and wages adjust when they are exposured to robots will be analyzed at worker level regressions. We will regress total workdays and wages between two period on robot exposure and other controls. Doing so also allows us to distinguish labor market outcome effect in variation of robot intensity between those who stay in firm, industry, or occupation vs who do not. Our all analysis takes account the endogeneity between variable of interest and error term using instrumenting the robot intensity with number of robots in Europe and US.