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Technological anxiety: How robots impact college graduates’ informal employment?

Technological anxiety: How robots impact college graduates’ informal employment? This study estimates the impact of robots on the informal employment of college graduates. Combining data on robot usage from the International Federation of Robotics Reports and the National Employment Survey of College Graduates, we find that a decline in informal employment among college graduates is associated with an increase in robot usage. Further, we exploit a Bartik instrument based on the exposure of robots from the five main importing countries to China to address endogeneity. As a consequence of robotic technological shock, graduates place a greater preference on a job’s reputation, remuneration and stability than flexibility, which reduces their likelihood of engaging in informal employment. Moreover, robots in both the industrial and service sectors have a significant impact on college graduates, and those in the industrial sector are more likely to be squeezed out. Our study suggests an implication for ensuring the quality of college graduates’ development. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Asian Public Policy Taylor & Francis

Technological anxiety: How robots impact college graduates’ informal employment?

17 pages

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References (24)

Publisher
Taylor & Francis
Copyright
© 2023 Informa UK Limited, trading as Taylor & Francis Group
ISSN
1751-6242
eISSN
1751-6234
DOI
10.1080/17516234.2023.2170308
Publisher site
See Article on Publisher Site

Abstract

This study estimates the impact of robots on the informal employment of college graduates. Combining data on robot usage from the International Federation of Robotics Reports and the National Employment Survey of College Graduates, we find that a decline in informal employment among college graduates is associated with an increase in robot usage. Further, we exploit a Bartik instrument based on the exposure of robots from the five main importing countries to China to address endogeneity. As a consequence of robotic technological shock, graduates place a greater preference on a job’s reputation, remuneration and stability than flexibility, which reduces their likelihood of engaging in informal employment. Moreover, robots in both the industrial and service sectors have a significant impact on college graduates, and those in the industrial sector are more likely to be squeezed out. Our study suggests an implication for ensuring the quality of college graduates’ development.

Journal

Journal of Asian Public PolicyTaylor & Francis

Published: Mar 5, 2023

Keywords: Robots; Informal employment; College graduates; Bartik instrument

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