Not all technological change is equal: how the separability of tasks mediates the effect of technology change on skill demand

Abstract

We measure the labor-demand effects of two simultaneous forms of technological change—automation of production processes and consolidation of parts. We collect detailed shop-floor data from four semiconductor firms with different levels of automation and consolidation. Using the O*NET survey instrument, we collect novel task data for operator laborers that contains process-step level skill requirements, including operations and control, near vision, and dexterity requirements. We then use an engineering process model to separate the effects of the distinct technological changes on these process tasks and operator skill requirements. Within an occupation, we show that aggregate measures of technological change can mask the opposing skill biases of multiple simultaneous technological changes. In our empirical context, automation polarizes skill demand as routine, codifiable tasks requiring low and medium skills are executed by machines instead of humans, whereas the remaining and newly created human tasks tend to require low and high skills. Consolidation converges skill demand as formerly divisible low and high skill tasks are transformed into a single indivisible task with medium skill requirements and higher cost of failure. We conclude by developing a new theory for how the separability of tasks mediates the effect of technology change on skill demand by changing the divisibility of labor.

Impacts on manufacturing workers as part of a whole-system energy transition

“…The intrinsic characteristics of a job may change as the new technologies and energy sources require different combinations of skills from workers, and potentially introduce further automation or oversight that can impact worker autonomy and variety of their jobs. However, the introduction of new manufacturing processes may also require more middle-skilled tasks, counteracting some of the polarization into high-and low-skill jobs common when manufacturing becomes more automated (Combemale et al, 2021). Transitioning to decarbonized manufacturing processes could also impact the meaningfulness and fulfillment workers gain from their jobs if they believe they are making significant contributions to larger societal goals.…”

“…These retrofits may include more automation, which has been shown to reduce the number of jobs, especially middleskill manufacturing jobs, polarizing jobs as very low-or highskilled (Autor et al, 2008;Acemoglu and Autor, 2011). However, if these process modifications include other technological changes, the introduction of new steps in the manufacturing process may counteract some of this polarization as combinations of low-skill and medium-skill processes are completed by workers (Combemale et al, 2021).…”

"30% fewer workers for electric vehicle assembly": harbinger or myth?

“…Employment data on existing BEV OEMs also suggests that battery cell manufacturing including pack assembly can increase labor needed per BEV by over 50% (Figure A2 and Table A2) 5 . Ultimately, whether new jobs in battery cell manufacturing will replace lost jobs in automotive parts manufacturing depends on the labor intensity needed to make battery cells, the geographical co-location of jobs, and skills [55][56][57][58], which should be further investigated (Figure B5).…”