Robots and Labor in the Service Sector: Evidence from Nursing Homes

Working Paper: NBER ID: w28322

Authors: Karen Eggleston; Yong Suk Lee; Toshiaki Iizuka

Abstract: In one of the first studies of service sector robotics using establishment-level data, we study the impact of robots on staffing in Japanese nursing homes, using geographic variation in robot subsidies as an instrumental variable. We find that robot adoption increases employment by augmenting the number of care workers and nurses on flexible employment contracts, and decreases difficulty in staff retention. Robot adoption also reduces the monthly wages of regular nurses, consistent with reduced burden of care. Our findings suggest that the impact of robots may not be detrimental to labor and may remedy challenges posed by rapidly aging populations.

Keywords: No keywords provided

JEL Codes: I11; J14; J23; O30


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
robot adoption (L63)employment of non-regular workers (J89)
robot adoption (L63)job satisfaction and stability among care workers (J28)
robot adoption (L63)monthly wages of regular nurses (J31)
robot adoption (L63)difficulty in staff retention (J63)

Back to index