Comments on 'Robots and Labour : Implications for Inflation Dynamics'

This paper investigates how the investment in robots affects labour market variables such as productivity, wages and employment, and vice versa. It contributes to this important subject in two ways. First, it enlarges the panel data set that encompass 29 industries and 33 countries by including China, India, Japan and Korea into EUKLEMS. Second, and more importantly, it incorporates the quality of robots by exploiting the price data from Statistics on manipulator and robots by order, production and shipment published by the Japanese Robot Association. This price data is applied (ie extrapolated) to other countries assuming that the firms' production technology in different countries is identical as long as they are in the same industry. The paper uses three empirical methodologies: cross-sectional regression, panel regression and panel vector autoregression (VAR). The empirical results establish a strong correlation between the labour market variables and robot investment.Full Publication: "https://ssrn.com/abstract=3575884" Inflation Dynamics in Asia and the Pacific