Browse > Article
http://dx.doi.org/10.22156/CS4SMB.2022.12.04.286

A Role of Automation in the Triggering of Employment, Productivity, and Profitability among Korean Companies from 2005 to 2015  

Son, Jungmin (School of Business, Chungnam National University)
Publication Information
Journal of Convergence for Information Technology / v.12, no.4, 2022 , pp. 286-302 More about this Journal
Abstract
This study examined the dynamic role that automation has had upon employment, productivity, and profitability. For the analysis, 342 companies of the Workplace Panel Survey of the Korea Labor Institute conducted from 2005 to 2015 was used. For analytical models, the fixed effect model, which is capable of controlling the endogeneity problems of variables, was used. According to the analysis results, the increased ratio of automation in Korean companies (1) resulted in the increase of turnover in the short and long terms, a temporary decrease in employment, and (2) a decrease of productivity in the short and medium terms, and thereby (3) failing to change profitability in a positive manner.
Keywords
Automation; Employment Growth; Labor Productivity; Corporate Profitability; Workplace Panel Data; Fixed Effect Models;
Citations & Related Records
연도 인용수 순위
  • Reference
1 M. Pianta. (2004). The impact of innovation on jobs, skills and wages. Economia e Lavoro, 1, 10-41.
2 World Economic Forum. (2020) The future of jobs report 2020. Geneva, Switzerland: World Economic Forum.
3 P. S. Mortensen & C. W. Bloch. (2005). Oslo Manual-Guidelines for collecting and interpreting innovation data. Organisation for Economic Co-operation and Development .
4 H. Feldmann. (2011). Central bank independence, wage bargaining, and labor market performance: new evidence. Southern Economic Journal, 77(3), 692-725.   DOI
5 D. H. Autor. (2015). Why are there still so many jobs? The history and future of workplace automation. Journal of Economic Perspectives 29(3), 3-30.   DOI
6 J. C. Wood. (1987). Karl Marx's economics: critical assessments (Vol. 1). Psychology Press.
7 T. R. Malthus & J. Pullen. (1989). TR Malthus: Principles of Political Economy (Vol. 2). Cambridge University Press.
8 G. Bonanno. (2016). ICT and R&D as inputs or efficiency determinants? Analysing Italian manufacturing firms (2007-2009). Eurasian Business Review, 6(3), 383-404.   DOI
9 A. Barrett & P. J. O'Connell. (2001). Does training generally work? The returns to in-company training. ILR Review, 54(3), 647-662.   DOI
10 H. Feldmann. (2013). Technological unemployment in industrial countries. Journal of Evolutionary Economics, 23(5), 1099-1126.   DOI
11 K. Matuzeviciute, M. Butkus & A. Karaliute, (2017). Do Technological Innovations Affect Unemployment? Some Empirical Evidence from European Countries. Economies, 5(4), 48.   DOI
12 M. Vivarelli. (2014). Innovation, employment and skills in advanced and developing countries: A survey of economic literature. Journal of Economic Issues, 48(1), 123-154.   DOI
13 E. Meschi, E. Taymaz & M. Vivarelli. (2011). Trade, technology and skills: evidence from Turkish microdata. Labour Economics, 18, 60-70.
14 OCDE. (2016). Automatisation et travail independant dans une economie numerique, Syntheses sur l'avenir du travail, Editions OCDE, Paris.
15 J. F. Kirkegaard (2008). Offshoring, outsourcing and production relocations-labor market effects in the OECD and developing Asia. The Singapore Economic Review, 53(03), 371-418.   DOI
16 J. Walker. (1981). Markets, Industrial Processes and Class Struggle: The Evolution of the Labor Process in the UK Engineering Industry. Review of Radical Political Economics, 12(4), 46-59.   DOI
17 S. R. Barley. (1990). The alignment of technology and structure through roles and networks. Administrative Science Quarterly, 61-103
18 T. J. Ha. (2007). Structural change of employment and job creation in the Korean manufacturing sector. Asian Journal of Technology Innovation, 15(1), 149-165.   DOI
19 A. P. Bartel. (1994). Productivity gains from the implementation of employee training programs. Industrial relations: Journal of Economy and Society, 33(4), 411-425.   DOI
20 F. Ranft & R. Thillaye. (2015). Rapidly changing labour markets: Is EU flexicurity still the answer?. Progressive Structural Reforms, 193.
21 Y. Nho. (2017), Employment Effects of Workplace Innovation, Korea Journal of Labor Studies, 23(2), 141-167.
22 K. L. Dewenter & P. H. Malatesta. (2001). State-owned and privately owned firms: An empirical analysis of profitability, leverage, and labor intensity. American Economic Review, 91(1), 320-334.   DOI
23 F. Postel-Vinay (2002) The dynamics of technological unemployment. International Economic Review 43(3), 737-760   DOI
24 A. P. Bartel. (1994). Productivity gains from the implementation of employee training programs. Industrial Relations: A Journal of Economy and Society, 33(4), 411-425.   DOI
25 G. Graetz & G. Michaels. (2018). Robots at work. Review of Economics and Statistics, 100(5), 753-768.   DOI
26 M. Wooden & A. Hawke. (2000). Unions and the employment growth: panel data evidence. Industrial Relations: A Journal of Economy and Society, 39(1), 88-107.   DOI
27 M. Doms, T. Dunne & K. R. Troske. (1997). Workers, wages, and technology. The Quarterly Journal of Economics, 112(1), 253-290.   DOI
28 E. Feltrinelli, R. Gabriele & S. Trento. (2017). The impact of middle manager training on productivity: A test on Italian companies. Industrial Relations: A Journal of Economy and Society, 56(2), 293-318.   DOI
29 R. Iyengar, C. Vanden-Bulte & T. W. Valente. (2011). Opinion leadership and social contagion in new product diffusion. Marketing Science, 30(2), 195-212.   DOI
30 K. Toker-Yildiz, M Trivedi, J. Choi & S. R. Chang (2017). Social interactions and monetary incentives in driving consumer repeat behavior. Journal of Marketing Research, 54(3), 364-380.   DOI
31 H. David & D. Dorn. (2013). The growth of low-skill service jobs and the polarization of the US labor market. American Economic Review, 103(5), 1553-97.   DOI
32 J. Song, D. J. Price, F. Guvenen, N. Bloom & T. Von Wachter. (2019). Firming up inequality. The Quarterly Journal of Economics, 134(1), 1-50.   DOI
33 D. Acemoglu & P. Restrepo. (2018). The race between man and machine: Implications of technology for growth, factor shares, and employment. American Economic Review, 108(6), 1488-1542.   DOI
34 S. Rao, J. Tang & W. Wang. (2008). What explains the Canada-US labour productivity gap? Canadian Public Policy, 34(2), 163-192.   DOI
35 E. Brynjolfsson, D. Rock & C. Syverson. (2021). The productivity J-curve: How intangibles complement general purpose technologies. American Economic Journal: Macroeconomics, 13(1), 333-72.   DOI