The impact of automation in developed countries

Abstract

The digital era is reshaping labor markets. Until now, this has been a developed country type of development. Developing countries, and in particular, Latin American economies are behind in terms of the adoption of labor-replacing technologies. But this delay does not mean these technologies are not having an impact on LAC. New technologies are reshaping trade, and therefore are already affecting developing countries through this channel. We study the impact of automation process in 19 lead countries on Latin American Exports to these nations. We find that imports of lead countries in sectors prone to adopt labor-replacing technologies grew around 40% less than others sectoral imports from LAC in the last 14 years.