Working Paper: NBER ID: w30400
Authors: Leah Platt Boustan; Jiwon Choi; David Clingingsmith
Abstract: The diffusion of computerized machine tools in the mid-20th century was a pivotal step in the century-long process of factory automation. We build a novel measure of exposure to computer numerical control (CNC) using initial variation in tool types across industries and differential shifts toward CNC by type. Industries more exposed to CNC from 1970-2010 increased labor productivity and reduced production employment. Workers in more exposed labor markets adjusted by shifting from metal to non-metal manufacturing. Union members were shielded from this job loss, and some workers returned to school to retrain.
Keywords: CNC; automation; employment; productivity; manufacturing
JEL Codes: J24; N32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| CNC technology exposure (L63) | labor productivity (J24) |
| CNC technology exposure (L63) | total employment (J23) |
| CNC technology exposure (L63) | employment for college-educated workers (J69) |
| CNC technology exposure (L63) | job losses for less-educated workers (F66) |
| CNC technology exposure (L63) | creation of new tasks requiring higher skills (J24) |
| CNC technology exposure (L63) | return to school by workers (J29) |
| CNC technology exposure (L63) | expanded degree offerings related to CNC (M49) |
| CNC technology exposure (L63) | gains in unionized jobs (J50) |
| CNC technology exposure (L63) | mediation effect of labor market institutions (J08) |
| CNC technology exposure (L63) | no relocation of firms to areas with weaker worker protections (J89) |
| CNC technology exposure (L63) | no effect on size distribution of manufacturing establishments (L69) |