Factory Automation, Labor Demand, and Market Dynamics
This study provides micro-level evidence on the labor market effects of historical au- tomation technology by studying early 20th century powerloom adoption in Japan’s silk-weaving industry. Relative to non-adopting factories in the same area, adopting factories employed more male mechanics but did not reduce female weaver employ- ment. Meanwhile, wages rose only modestly despite large productivity gains. At the industry level, however, the exit of low-wage, low-productivity plants led to sub- stantial net job losses—“technological unemployment†—and stronger overall wage growth. Nature of the technology, monopsony power, and market competition were all important in shaping these outcomes.
Authors
- Tetsuji Okazaki (ORCID: https://orcid.org/0000-0002-6017-6935)
- Daiji Kawaguchi (ORCID: https://orcid.org/0000-0002-0595-9443)
- Xuanli Zhu
Publication Details
- Journal
- RePEc: Research Papers in Economics
- Published
- 2025-05-01
- DOI
- https://doi.org/10.7916/11qr-8p98
- Primary Topic
- Economic theories and models
- Type
- article
- Field-Weighted Citation Impact
- 0.00