The Employment Impact of Emerging Digital Technologies
Sugat ChaturvediAhmedabad University
We estimate the exposure of industries and occupations to digital automation technologies that emerged over the past decade and examine their impact on European employment. Using a novel approach that leverages state-of-the-art natural language processing techniques — specifically, sentence transformers — we compute exposure scores based on the semantic similarity between patent abstracts and standard occupation/industrial descriptions to construct an open-access database. We provide an application of these data by estimating the impact of these emerging technologies on employment across European regions. We find an overall positive effect of emerging digital automation technologies on employment. However, there are heterogeneous effects across technologies. We find that industrial automation (including robots), the Internet of Things, machine learning, cloud storage, intelligent logistics, and mobile payments negatively impact regional employment.