The local labor market effects of modern manufacturing capital: evidence from France
Aghion, P.
, Antonin, C., Bunel, S. & Jaravel, X.
(2023).
The local labor market effects of modern manufacturing capital: evidence from France.
AEA Papers and Proceedings,
113, 219 - 223.
https://doi.org/10.1257/pandp.20231039
, Antonin, C., Bunel, S. & Jaravel, X.
(2023).
The local labor market effects of modern manufacturing capital: evidence from France.
AEA Papers and Proceedings,
113, 219 - 223.
https://doi.org/10.1257/pandp.20231039
Using an event study methodology and comprehensive micro data from the French manufacturing sector, we analyze the local labor market effects of investments in modern manufacturing capital, including modern automation technologies. We estimate that commuting zones with higher investments in modern manufacturing capital and automation benefit from higher labor demand, with an increase in both local employment and wages. Our findings are consistent with a task-based model where the productivity effects of modern capital investments and automation outweigh their displacement effect.
Explore Further
- D20 - General
- G31 - Capital Budgeting; Fixed Investment and Inventory Studies
- G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure
- J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment
- L60 - General
- M51 - Firm Employment Decisions; Promotions (hiring, firing, turnover, part-time, temporary workers, seniority issues)
- R23 - Regional Migration; Regional Labor Markets; Population
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Jaravel, X., Aghion, P., Antonin, C. & Bunel, S.
(2023).
Data and Code for: "The Local Labor Market Effects of Modern Manufacturing Capital: Evidence from France".
[Dataset]. OpenICPSR.
https://doi.org/10.3886/e184641