Our directed technological change model further predicts that the induced adoption of automation technology should be more pronounced in industries that rely more on middle-aged workers and those that present greater opportunities for automation. We also provide evidence of more rapid development of automation technologies in countries undergoing greater demographic change. We then show that demographic change-corresponding to an increasing ratio of older to middle-aged workers-is associated with greater adoption of robots and other automation technologies across countries and with more robotics-related activities across US commuting zones. Using US data, we document that robots substitute for middle-aged workers (those between the ages of 36 and 55). We argue theoretically and document empirically that aging leads to greater (industrial) automation, and in particular, to more intensive use and development of robots. Transportation Economics in the 21st Century.Training Program in Aging and Health Economics.The Roybal Center for Behavior Change in Health.Retirement and Disability Research Center.Measuring the Clinical and Economic Outcomes Associated with Delivery Systems.
Productivity, Innovation, and Entrepreneurship.International Finance and Macroeconomics.