Impact of Robot Installations on Employment and Labour Productivity in Automotive Industry
Impact of Robot Installations on Employment and Labour Productivity in Automotive Industry

Summary/Abstract: The automotive industry is regarded as one of the most robotized sectors of the manufacturing industry. The topic of robotization is currently intensely debated as part of the Fourth Industrial Revolution or Industry 4.0. In this study, we focus on automobile manufacturers operating in selected countries of the European Union and analyse the level of labour productivity and employment in the period 2002-2021. Specifically, we investigate whether the annual installation of robots and the total number of robots in the automotive industry have a negative impact on labour demand. The collected data are evaluated using empirical analysis. Our estimations show that the installation of robots in the automotive industry has a positive effect on labour demand. At the same time, however, it is found that labour productivity tends to decrease as the number of robots increases. A possible explanation for these results is that major manufacturing activities in this sector are being replaced with machines at the expense of human labour. Implications for Central European audience: Theoretical implications of the article arise from primary literature, which investigates the implications of industry robotization on the labour market. The practical implications stem from our empirical analysis, which investigates the impact of robotization on labour demand and productivity in automobile industries across the EU.

• Details
• Contents