In other words, industrial robots are fully autonomous machines that do not require any human intervention and can be reprogrammed to perform several manual tasks. The International Federation of Robotics (IFR) defines an industrial robot as an “automatically controlled, reprogrammable multipurpose manipulator, programmable in three or more axes, which can be either fixed in place or mobile for use in industrial automation applications.” See International Federation of Robotics. In this article, we focus on industrial robots, which are a specific type of automation technology. In general, the types of tasks that can be outsourced are mostly routine tasks. Similarly, some stages of the production process of a good or service can be performed in foreign countries therefore, certain tasks can be outsourced. For instance, processes such as grocery store checkout have been automated to a great degree and thus require less labor to perform routine tasks.
Automation refers to any technology that reduces the need for human assistance. See, for example, Goos et al., Autor et al., and Autor and Dorn.Īs has been argued in the economic literature, the most likely drivers of job polarization are automation and offshoring, because both these forces lower the demand for middle-skill occupations relative to the rest. Economists have coined the term “job polarization” for this process. labor markets is the decline of middle-skill occupations, like manufacturing and production jobs, and the growth in both high- and low-skill occupations, like managerial jobs on one end and jobs that assist or care for others on the other.
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