{"id":402,"date":"2026-04-27T11:17:15","date_gmt":"2026-04-27T10:17:15","guid":{"rendered":"https:\/\/www.farhi-innovation-lab.fr\/?post_type=publication&#038;p=402"},"modified":"2026-04-27T15:15:05","modified_gmt":"2026-04-27T14:15:05","slug":"the-direct-and-indirect-effects-of-automation-on-employment-a-survey-of-the-recent-literature","status":"publish","type":"publication","link":"https:\/\/www.farhi-innovation-lab.fr\/fr\/publication\/the-direct-and-indirect-effects-of-automation-on-employment-a-survey-of-the-recent-literature\/","title":{"rendered":"The Direct and Indirect Effects of Automation on Employment: A Survey of the Recent Literature"},"content":{"rendered":"<p class=\"wp-block-paragraph\">In this article, we survey the recent literature and discuss two contrasting views on the direct and indirect<br>impacts of automation on employment. A first view predicts that firms that automation reduce<br>employment (a negative \u201cdirect effect\u201d), even if this may ultimately result in new job creations taking<br>advantage of the lower equilibrium wage induced by job destructions (a positive \u201cindirect effect\u201d). A<br>second approach emphasizes the market size and business stealing effects of automation. Automating<br>firms become more productive, which enables them to lower their quality-adjusted prices, and therefore<br>to increase the demand for their products. The resulting increase in scale translates into higher<br>employment by automating firms (a positive \u201cdirect effect\u201d), potentially at the expense of their<br>competitors (a negative \u201cindirect effect\u201d through business stealing). Drawing from our empirical work<br>on French firm-level data and a growing literature covering multiple countries, we provide empirical<br>support for this second view: automation has a positive direct effect on employment at the firm level.<br>We discuss the implications of these results for the taxation of automation technologies such as robots.<\/p>","protected":false},"excerpt":{"rendered":"<p>In this article, we survey the recent literature and discuss two contrasting views on the direct and indirectimpacts of automation on employment. A first view predicts that firms that automation reduceemployment (a negative \u201cdirect effect\u201d), even if this may ultimately result in new job creations takingadvantage of the lower equilibrium wage induced by job destructions [&hellip;]<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":true},"thematique":[80,82,49,83],"type-de-publication":[45],"class_list":["post-402","publication","type-publication","status-publish","hentry","thematique-ai","thematique-employment","thematique-growth","thematique-policy","type-de-publication-working-paper"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Direct and Indirect Effects of Automation on Employment: A Survey of the Recent Literature - Farhi Innovation Lab<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Direct and Indirect Effects of Automation on Employment: A Survey of the Recent Literature - Farhi Innovation Lab\" \/>\n<meta property=\"og:description\" content=\"In this article, we survey the recent literature and discuss two contrasting views on the direct and indirectimpacts of automation on employment. A first view predicts that firms that automation reduceemployment (a negative \u201cdirect effect\u201d), even if this may ultimately result in new job creations takingadvantage of the lower equilibrium wage induced by job destructions [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.farhi-innovation-lab.fr\/fr\/publication\/the-direct-and-indirect-effects-of-automation-on-employment-a-survey-of-the-recent-literature\/\" \/>\n<meta property=\"og:site_name\" content=\"Farhi Innovation Lab\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-27T14:15:05+00:00\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/the-direct-and-indirect-effects-of-automation-on-employment-a-survey-of-the-recent-literature\\\/\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/the-direct-and-indirect-effects-of-automation-on-employment-a-survey-of-the-recent-literature\\\/\",\"name\":\"The Direct and Indirect Effects of Automation on Employment: A Survey of the Recent Literature - Farhi Innovation Lab\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#website\"},\"datePublished\":\"2026-04-27T10:17:15+00:00\",\"dateModified\":\"2026-04-27T14:15:05+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/the-direct-and-indirect-effects-of-automation-on-employment-a-survey-of-the-recent-literature\\\/#breadcrumb\"},\"inLanguage\":\"fr-FR\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/the-direct-and-indirect-effects-of-automation-on-employment-a-survey-of-the-recent-literature\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/the-direct-and-indirect-effects-of-automation-on-employment-a-survey-of-the-recent-literature\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Accueil\",\"item\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Publications\",\"item\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publications\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"The Direct and Indirect Effects of Automation on Employment: A Survey of the Recent Literature\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#website\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/\",\"name\":\"Farhi Innovation Lab\",\"description\":\"Economics of Institutions, Innovation, and Growth Chair\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-FR\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#organization\",\"name\":\"Farhi Innovation Lab\",\"alternateName\":\"Farhi Innovation Lab\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-FR\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/web-app-manifest-512x512-1.png\",\"contentUrl\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/web-app-manifest-512x512-1.png\",\"width\":512,\"height\":512,\"caption\":\"Farhi Innovation Lab\"},\"image\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Direct and Indirect Effects of Automation on Employment: A Survey of the Recent Literature - Farhi Innovation Lab","robots":{"index":"noindex","follow":"follow"},"og_locale":"fr_FR","og_type":"article","og_title":"The Direct and Indirect Effects of Automation on Employment: A Survey of the Recent Literature - Farhi Innovation Lab","og_description":"In this article, we survey the recent literature and discuss two contrasting views on the direct and indirectimpacts of automation on employment. 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