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The Effect of Automation on the Labor Market

Student: Snitko Olga

Supervisor: Alexander Skorobogatov

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Year of Graduation: 2020

Due to the spread of technologies, the problem of the impact of robotization and automation on the labor market has gained great popularity. First of all, discussions are connected with the threat of replacing jobs with robots and lower incomes. This work is devoted to studying the influence of automation processes on key indicators of the labor market in Russia: employment and wages. Automation in this study means the use of various technologies to increase the efficiency and quality of production processes. In this study we test hypotheses about the impact of technological development and the share of routine labor in the region on the speed of technology diffusion, employment and wages. For the analysis we use the data of the Federal State Statistics Service in the context of regions of Russian Federation. As a result of the study, it was found that despite the backlog of Russia in the field of innovation development, the Russian labor market shows the same trends as were observed in developed countries. In regions with more employment in routine occupations, the pace of technology diffusion will be higher. Along with this, in such regions employment growth in the service sector will be observed. In addition, the level of innovation activity in the regions has a positive effect on the employees' wages, and also leads to an increase in differences in the employment of employees in routine and less routine occupations.

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