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Sustainability 2018, 10(2), 490; https://doi.org/10.3390/su10020490

Identifying Factors Reinforcing Robotization: Interactive Forces of Employment, Working Hour and Wage

1
and
2,*
1
Department of Economics, Sungkyunkwan University, 25-2, Sungkyunkwan-ro, Jongno-gu, Seoul 03063, Korea
2
HRD Center, Sungkyunkwan University, 25-2, Sungkyunkwan-ro, Jongno-gu, Seoul 03063, Korea
*
Author to whom correspondence should be addressed.
Received: 3 January 2018 / Revised: 9 February 2018 / Accepted: 9 February 2018 / Published: 12 February 2018
(This article belongs to the Special Issue The Impact of Technological Change on Employment, Skills and Earnings)
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Abstract

Unlike previous studies on robotization approaching the future based on the cutting-edge technologies and adopting a framework where robotization is considered as an exogenous variable, this study considers that robotization occurs endogenously and uses it as a dependent variable for an objective examination of the effect of robotization on the labor market. To this end, a robotization indicator is created based on the actual number of industrial robots currently deployed in workplaces, and a multiple regression analysis is performed using the robotization indicator and labor variables such as employment, working hours, and wage. The results using the multiple regression considering the triangular relationship of employment–working-hours–wages show that job destruction due to robotization is not too remarkable yet that use. Our results show the complementary relation between employment and robotization, but the substituting relation between working hour and robotization. The results also demonstrate the effects of union, the size of the company and the proportion of production workers and simple labor workers etc. These findings indicate that the degree of robotization may vary with many factors of the labor market. Limitations of this study and implications for future research are also discussed. View Full-Text
Keywords: robotization; the triangular relationship of employment–working-hours–wages; employment rigidity; reduction of working hours; seniority-based wage system; labor union robotization; the triangular relationship of employment–working-hours–wages; employment rigidity; reduction of working hours; seniority-based wage system; labor union
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Cho, J.; Kim, J. Identifying Factors Reinforcing Robotization: Interactive Forces of Employment, Working Hour and Wage. Sustainability 2018, 10, 490.

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