Journal of Financial Economics Vol. 174 2025
Robots and firm investment
Abstract
Using cross-country and German administrative data on robotization, we show that the impact of robots on firms and labor markets is limited. First, investment in robots is small and highly concentrated in a few industries, representing less than 0.3% of aggregate expenditures on equipment. Second, robotization does not grow as rapidly as Information Technology did in the past, and current growth is driven by gains in developing countries. Third, firms invest in robots when they face difficulties in finding workers and subsequently increase employment after the investment. The total employment effect in exposed industries and regions is negative but modest in magnitude. We discuss why the effects of robots are limited and demonstrate that other digital technologies have more potential for large economic impact.
- DOI
- 10.1016/j.jfineco.2025.104183
- Volume
- 174
- Pages
- 104183
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib