Robots and unions: The moderating effect of organized labour on technological unemployment

Abstract

This study analyses the moderating effect of union density on industrial employment and unemployment in advanced economies facing exposure to industrial robots. Applying random effects within-between regression models to a pseudo-panel of observations from 27 European countries and the United States over 1998–2019, the study finds that higher union density is associated with a greater decline in industry-sector employment for younger workers and workers with lower secondary education when robot exposure increases. It is also found that the unemployment rate declines more strongly in countries with low union density when robot exposure increases. These findings suggest that exposure to industrial robots promotes labour market dualization in strongly unionized countries, whereas workers with tertiary education and labour market tenure are the main beneficiaries from technological change.