RESEARCh
RESEARCh
with Shubhdeep Deb, Jan Eeckhout and Larry Warren
Econometrica. Vol 92 (3), 603-636, May 2024. DOI. Draft
Comments: Gianluca Violante, John Van Reenan, Response
with Shubhdeep Deb, Jan Eeckhout and Larry Warren
Journal of the European Economic Association. 20 (6), 2181-2225, December 2022. DOI. Draft.
with Nicolò Dalvit and Joanne Tan
Draft. (Updated draft coming soon!)
Presented at: City, University of London, Kent-BoE-Bristol Workshop, E1 Quantitative Macro Workshop at Queen Mary, Junior Research Day at College de France, Esade Macro Meetings, BCAM Workshop at Birkbeck, Macroeconomic Workshop - Surrey, BSE Summer Forum, SED, EEA-ESEM, Mannheim Quantitative Macro, IFS-UCL-IoE Human Capital and Labour Markets Seminar
Abstract: Using French administrative data, I provide empirical evidence that larger firms are more likely to adopt automation capital, that firms that adopt automation capital grow in revenue and employment after adoption, and that firms exercise size-related labor market power that increases after adoption. I rationalize this evidence in a general equilibrium model with two key assumptions: automation adoption has scale effects, i.e., automation increases firm productivity, and labor markets are oligopsonistic, finding support for both in the data. The model implies that automation adoption has implications for both equity and efficiency. I find that automation adoption increases median welfare by 3.5%, but it also exacerbates misallocation, leading to efficiency losses. In the absence of automation-induced misallocation, median welfare would have been 4.2% higher, suggesting an important role for efficiency-enhancing policies in conjunction with redistributive policies.
I was honored with the "Best Young Labor Economist" prize by the European Association of Labour Economist for this paper.
A small Twitter thread on the paper!
with Zsofia Barany and Christian Siegal (Preliminary Slides.)
with Etienne Wasmer
Lo Bello and Pesaresi