Minimum Wage and Robots Adoption:Differences in Extensive Margin and Intensive Margin
Higher minimum wages increase firms'probability of adopting industrial robots(the exten-sive margin).However,for firms that have already adopted industrial robots,the increase in minimum wage has no effect on the number of adopted robots(the intensive margin),because the increase in mini-mum wage has two competing effects,namely a substitution effect and a scale effect.The impact on the intensive margin is larger in industries with higher product substitution elasticity,while the impact on the extensive margin is larger in firms with higher productivity.Our research enriches the literature on the re-lation between labor costs and industrial robots.
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维普
