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Robots and Reshoring

Research Project
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01.01.2017
 - 31.12.2021

Robots in advanced economies have the potential to reduce employment in offshoring countries by making offshoring relatively less attractive. I analyze the impact of robots on employment in an offshoring country, using data from Mexican local labor markets between 1990 and 2015. I show that industrial robots in the US cause economically significant employment reductions in Mexico. These employment effects are mirrored in similarly sized reductions in exports, consistent with reshoring, the reverse of offshoring, as a mechanism.

Publications

Faber, Marius (2020) ‘Robots and reshoring: Evidence from Mexican labor markets’, Journal of international economics, 127(103384), pp. 1–34. Available at: https://doi.org/10.1016/j.jinteco.2020.103384.

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Members (2)

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Kurt Schmidheiny

Principal Investigator
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Marius Faber

Project Member