{"id":426,"date":"2026-04-27T15:05:27","date_gmt":"2026-04-27T14:05:27","guid":{"rendered":"https:\/\/www.farhi-innovation-lab.fr\/?post_type=publication&#038;p=426"},"modified":"2026-04-27T15:05:27","modified_gmt":"2026-04-27T14:05:27","slug":"modern-manufacturing-capital-labor-demand-and-product-market-dynamics-evidence-from-france","status":"publish","type":"publication","link":"https:\/\/www.farhi-innovation-lab.fr\/fr\/publication\/modern-manufacturing-capital-labor-demand-and-product-market-dynamics-evidence-from-france\/","title":{"rendered":"Modern Manufacturing Capital, Labor Demand, and Product Market Dynamics: Evidence from France"},"content":{"rendered":"<p class=\"wp-block-paragraph\">This paper estimates the labor and product market effects of a fall in the cost of investments inmodern manufacturing capital, including modern automation technologies. Causal effects areestimated with a shift-share IV design leveraging pre-determined supply linkages and produc-tivity shocks. At both the firm and industry levels, we find that capital investments lead tohigher labor demand, higher sales, higher exports, and lower labor shares, while wage inequalityremains unchanged. The industry-level labor demand response is positive only in industriesthat are exposed to import competition, due to business-stealing across countries. Our findingsthus point to a task-based framework where the productivity effect dominates the displacementeffect.<\/p>","protected":false},"excerpt":{"rendered":"<p>This paper estimates the labor and product market effects of a fall in the cost of investments inmodern manufacturing capital, including modern automation technologies. Causal effects areestimated with a shift-share IV design leveraging pre-determined supply linkages and produc-tivity shocks. At both the firm and industry levels, we find that capital investments lead tohigher labor demand, [&hellip;]<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":true},"thematique":[112,113,76],"type-de-publication":[50],"class_list":["post-426","publication","type-publication","status-publish","hentry","thematique-automation","thematique-labor","thematique-productivity","type-de-publication-publication"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Modern Manufacturing Capital, Labor Demand, and Product Market Dynamics: Evidence from France - 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=\"Modern Manufacturing Capital, Labor Demand, and Product Market Dynamics: Evidence from France - Farhi Innovation Lab\" \/>\n<meta property=\"og:description\" content=\"This paper estimates the labor and product market effects of a fall in the cost of investments inmodern manufacturing capital, including modern automation technologies. Causal effects areestimated with a shift-share IV design leveraging pre-determined supply linkages and produc-tivity shocks. 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