Robots, Exports and Top Income Inequality: Evidence for the U.S.

Autores
César, Andrés Manuel; Falcone, Guillermo Enrique; Garriga, Pablo
Año de publicación
2022
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
The last decades have witnessed a revolution in manufacturing production characterized by increasing technology adoption and a strong expansion of international trade. Simultaneously, the income distribution has exhibited both polarization and concentration among the richest. Combining datasets from the U.S. Census Bureau, the U.S. Internal Revenue Service, the International Federation of Robotics, EU KLEMS, and COMTRADE, we study the causal effect of industrial automation on income inequality in the U.S. during 2010–2015. We exploit spatial and time variations in exposure to robots arising from past differences in industry specialization across U.S. metropolitan areas and the evolution of robot adoption across industries. We document a robust positive impact of robotics on income for only the top 1 percent of taxpayers, which is largest for top income fractiles. Therefore, industrial automation fuels income inequality and, particularly, top income inequality. According to our estimates, one more robot per thousand workers results in relative increments of the total taxable income accruing to fractiles P99 to P99.9, P99.9 to P99.99 and P99.99 to P100, of 2.1 percent, 3.5 percent and 5.9 percent, respectively. We also find that robotization leads to increased exports to high-income and upper-middle-income economies, and that this is one of the key mechanisms behind the surge in top income inequality.
Fil: César, Andrés Manuel. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Falcone, Guillermo Enrique. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Garriga, Pablo. Banco Mundial; Estados Unidos
Materia
Robots
Automation
Metropolitan areas
United States
Exports
Income inequality
Top incomes
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/230572

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spelling Robots, Exports and Top Income Inequality: Evidence for the U.S.César, Andrés ManuelFalcone, Guillermo EnriqueGarriga, PabloRobotsAutomationMetropolitan areasUnited StatesExportsIncome inequalityTop incomeshttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5The last decades have witnessed a revolution in manufacturing production characterized by increasing technology adoption and a strong expansion of international trade. Simultaneously, the income distribution has exhibited both polarization and concentration among the richest. Combining datasets from the U.S. Census Bureau, the U.S. Internal Revenue Service, the International Federation of Robotics, EU KLEMS, and COMTRADE, we study the causal effect of industrial automation on income inequality in the U.S. during 2010–2015. We exploit spatial and time variations in exposure to robots arising from past differences in industry specialization across U.S. metropolitan areas and the evolution of robot adoption across industries. We document a robust positive impact of robotics on income for only the top 1 percent of taxpayers, which is largest for top income fractiles. Therefore, industrial automation fuels income inequality and, particularly, top income inequality. According to our estimates, one more robot per thousand workers results in relative increments of the total taxable income accruing to fractiles P99 to P99.9, P99.9 to P99.99 and P99.99 to P100, of 2.1 percent, 3.5 percent and 5.9 percent, respectively. We also find that robotization leads to increased exports to high-income and upper-middle-income economies, and that this is one of the key mechanisms behind the surge in top income inequality.Fil: César, Andrés Manuel. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; ArgentinaFil: Falcone, Guillermo Enrique. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; ArgentinaFil: Garriga, Pablo. Banco Mundial; Estados UnidosCentro de Estudios Distributivos, Laborales y Sociales2022-12info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/230572César, Andrés Manuel; Falcone, Guillermo Enrique; Garriga, Pablo; Robots, Exports and Top Income Inequality: Evidence for the U.S.; Centro de Estudios Distributivos, Laborales y Sociales; Documentos de trabajo (CEDLAS); 307; 12-2022; 1-541853-0168CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://www.cedlas.econo.unlp.edu.ar/wp/wp-content/uploads/doc_cedlas307.pdf?dl=0info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-09-03T10:05:07Zoai:ri.conicet.gov.ar:11336/230572instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-09-03 10:05:07.547CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Robots, Exports and Top Income Inequality: Evidence for the U.S.
title Robots, Exports and Top Income Inequality: Evidence for the U.S.
spellingShingle Robots, Exports and Top Income Inequality: Evidence for the U.S.
César, Andrés Manuel
Robots
Automation
Metropolitan areas
United States
Exports
Income inequality
Top incomes
title_short Robots, Exports and Top Income Inequality: Evidence for the U.S.
title_full Robots, Exports and Top Income Inequality: Evidence for the U.S.
title_fullStr Robots, Exports and Top Income Inequality: Evidence for the U.S.
title_full_unstemmed Robots, Exports and Top Income Inequality: Evidence for the U.S.
title_sort Robots, Exports and Top Income Inequality: Evidence for the U.S.
dc.creator.none.fl_str_mv César, Andrés Manuel
Falcone, Guillermo Enrique
Garriga, Pablo
author César, Andrés Manuel
author_facet César, Andrés Manuel
Falcone, Guillermo Enrique
Garriga, Pablo
author_role author
author2 Falcone, Guillermo Enrique
Garriga, Pablo
author2_role author
author
dc.subject.none.fl_str_mv Robots
Automation
Metropolitan areas
United States
Exports
Income inequality
Top incomes
topic Robots
Automation
Metropolitan areas
United States
Exports
Income inequality
Top incomes
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv The last decades have witnessed a revolution in manufacturing production characterized by increasing technology adoption and a strong expansion of international trade. Simultaneously, the income distribution has exhibited both polarization and concentration among the richest. Combining datasets from the U.S. Census Bureau, the U.S. Internal Revenue Service, the International Federation of Robotics, EU KLEMS, and COMTRADE, we study the causal effect of industrial automation on income inequality in the U.S. during 2010–2015. We exploit spatial and time variations in exposure to robots arising from past differences in industry specialization across U.S. metropolitan areas and the evolution of robot adoption across industries. We document a robust positive impact of robotics on income for only the top 1 percent of taxpayers, which is largest for top income fractiles. Therefore, industrial automation fuels income inequality and, particularly, top income inequality. According to our estimates, one more robot per thousand workers results in relative increments of the total taxable income accruing to fractiles P99 to P99.9, P99.9 to P99.99 and P99.99 to P100, of 2.1 percent, 3.5 percent and 5.9 percent, respectively. We also find that robotization leads to increased exports to high-income and upper-middle-income economies, and that this is one of the key mechanisms behind the surge in top income inequality.
Fil: César, Andrés Manuel. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Falcone, Guillermo Enrique. Universidad Nacional de La Plata. Facultad de Ciencias Económicas. Departamento de Ciencias Económicas. Centro de Estudios Distributivos Laborales y Sociales; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata; Argentina
Fil: Garriga, Pablo. Banco Mundial; Estados Unidos
description The last decades have witnessed a revolution in manufacturing production characterized by increasing technology adoption and a strong expansion of international trade. Simultaneously, the income distribution has exhibited both polarization and concentration among the richest. Combining datasets from the U.S. Census Bureau, the U.S. Internal Revenue Service, the International Federation of Robotics, EU KLEMS, and COMTRADE, we study the causal effect of industrial automation on income inequality in the U.S. during 2010–2015. We exploit spatial and time variations in exposure to robots arising from past differences in industry specialization across U.S. metropolitan areas and the evolution of robot adoption across industries. We document a robust positive impact of robotics on income for only the top 1 percent of taxpayers, which is largest for top income fractiles. Therefore, industrial automation fuels income inequality and, particularly, top income inequality. According to our estimates, one more robot per thousand workers results in relative increments of the total taxable income accruing to fractiles P99 to P99.9, P99.9 to P99.99 and P99.99 to P100, of 2.1 percent, 3.5 percent and 5.9 percent, respectively. We also find that robotization leads to increased exports to high-income and upper-middle-income economies, and that this is one of the key mechanisms behind the surge in top income inequality.
publishDate 2022
dc.date.none.fl_str_mv 2022-12
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/230572
César, Andrés Manuel; Falcone, Guillermo Enrique; Garriga, Pablo; Robots, Exports and Top Income Inequality: Evidence for the U.S.; Centro de Estudios Distributivos, Laborales y Sociales; Documentos de trabajo (CEDLAS); 307; 12-2022; 1-54
1853-0168
CONICET Digital
CONICET
url http://hdl.handle.net/11336/230572
identifier_str_mv César, Andrés Manuel; Falcone, Guillermo Enrique; Garriga, Pablo; Robots, Exports and Top Income Inequality: Evidence for the U.S.; Centro de Estudios Distributivos, Laborales y Sociales; Documentos de trabajo (CEDLAS); 307; 12-2022; 1-54
1853-0168
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
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https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
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application/pdf
dc.publisher.none.fl_str_mv Centro de Estudios Distributivos, Laborales y Sociales
publisher.none.fl_str_mv Centro de Estudios Distributivos, Laborales y Sociales
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