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• W3121220994 startingPage "103744" @default.
• W3121220994 abstract "We propose a theoretical framework to analyze the offshoring and reshoring decisions of firms in the age of automation. Our theory suggests that increasing productivity in automation leads to a relocation of previously offshored production back to the home economy but without improving low-skilled wages and without creating jobs for low-skilled workers. Since it leads also to increasing wages for high-skilled workers, automation-induced reshoring is associated with an increasing skill premium and increasing inequality. We develop a measure for reshoring activity at the macro-level and, using data from the world input output table, provide evidence for automation-driven reshoring. On average, within manufacturing sectors, an increase by one robot per 1000 workers is associated with a 3.5% increase of reshoring activity. We corroborate the results using an IV regression framework. We also provide the first cross-country evidence that reshoring is positively associated with wages and employment for workers in professional occupations but not for workers in elementary-routine occupations and that tariffs increase the reshoring intensity." @default.
• W3121220994 created "2021-02-01" @default.
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• W3121220994 date "2021-07-01" @default.
• W3121220994 modified "2023-10-18" @default.
• W3121220994 title "Robots, reshoring, and the lot of low-skilled workers" @default.
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• W3121220994 doi "https://doi.org/10.1016/j.euroecorev.2021.103744" @default.
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