| Number |
CREPEDP-150 |
| Publication Date |
March 2024; revised in April 2025 |
| Title |
"Factory Automation, Labor Demand, and Market Dynamics"
|
| Author |
Daiji Kawaguchi, Tetsuji Okazaki, and Xuanli Zhu
|
| Abstract |
This study provides micro-level evidence on the labor market effects of historical automation
technology by studying early 20th century powerloom adoption in Japan’s
silk-weaving industry. Relative to non-adopting factories in the same area, adopting
factories employed more male mechanics but did not reduce female weaver employment.
Meanwhile, wages rose only modestly despite large productivity gains. At
the industry level, however, the exit of low-wage, low-productivity plants led to substantial
net job losses—“technological unemployment”—and stronger overall wage
growth. Nature of the technology, monopsony power, and market competition were
all important in shaping these outcomes.
|
| Other information |
Paper in English (76 pages) |