The impact of the industrial robots on the employment rate and wages: prospects of circular economy and sustainable development
ISSN: 0025-1747
Article publication date: 19 September 2023
Issue publication date: 5 September 2024
Abstract
Purpose
This study aims to investigate whether the increasing robot adoption will affect employment rate and wages to contribute to the economic cycle and sustainable development in the world.
Design/methodology/approach
The authors introduce a two-way fixed effect model and ordinary least-squares (OLS) model to evaluate the influence based on relevant data of the eighteen countries with the largest robot stocks and robot densities in the world from 2006 to 2019 to test the influences and do the robustness test and endogeneity test by using empirical models.
Findings
The authors’ research findings suggest that increasing robot adoption can cause strong negative impacts on employment for both males and females in these economies. Second, the effect of robots on reducing job opportunities has penetrated different industries. It means that this negative impact of robots is comprehensive for the industry. Third, robot adoption can have a strong positive influence on wages and increase workers' incomes.
Research limitations/implications
The limitations of the study are that the influence of industrial intelligence technologies on the circular economy is diversities in different countries. Thus, this study should consider the development levels of different economies to do additional confirmatory studies.
Practical implications
This study makes out the correlations between industrial robots and the employment market from the circular economy perspective. The result proves the existence of this influence relationship, and the authors propose some suggestions to promote sustainable economic development.
Social implications
This paper addresses the activity of industrial intelligence technologies in the labor market. The employment market is an important part of the circular economy, and it will benefit social development if the government provides appropriate guidance for social investment and industrial layout.
Originality/value
This study is one of the few studies which considered the impact of industrial robots on employment and wages from the perspective of different industries, and this is very important for the circular economy in the world. The results of this paper provide an instructive reference for government policymakers and other countries to stabilize the labor market and optimize human resources for sustainable economic development.
Keywords
Acknowledgements
Funding: This research was funded by the Key Research Base of Humanities and Social Sciences in Guangxi Universities “Guangxi Development Research Strategy Institute” (Grant No.2022GDSIYB16).
Declaration of Competing Interest: The authors declare that they have no competing interests.
Data availability: Data will be made available on request.
Expression of concern: The publisher of Management Decision is issuing an Expression of Concern for the following article Zhu, H., Zhang, X. and Yu, B. (2023), “The impact of the industrial robots on the employment rate and wages: prospects of circular economy and sustainable development”, Management Decision, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MD-03-2023-0315, which was submitted to the guest-edited special issue ‘Navigating the role of circular economy in entrepreneurship: Opportunities and challenges’. An investigation by the publisher found a number of articles with multiple concerns, including but not limited to compromised editorial handling and reviewing, undisclosed conflicts of interest, and lack of suitability for the scope of the journal. As a result of these concerns and as trust in the content is central to the integrity of the publication process, the Editor-in-Chief and publisher have taken the decision to publish an Expression of Concern for all articles within this special issue. The journal has not been able to confirm whether the authors were aware of these concerns. The authors of this article would like to note that they agree with the content of this notice. An investigation is ongoing and is currently unresolved. Further information will be provided by Management Decision as it becomes available. The publisher of the journal sincerely apologizes to the readers and authors of this article, who were not found to be involved in any malpractice.
Citation
Zhu, H., Zhang, X. and Yu, B. (2024), "The impact of the industrial robots on the employment rate and wages: prospects of circular economy and sustainable development", Management Decision, Vol. 62 No. 9, pp. 2855-2874. https://doi.org/10.1108/MD-03-2023-0315
Publisher
:Emerald Publishing Limited
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