Effects of Automation on the Gender Pay Gap: the case of Estonia

This paper investigates how investments in automation-intensive goods affects the gender pay gap. The evidence on effects of automation labour market is growing; however, little known about implications for data used are from a matched employer-employee dataset incorporating detailed information firms, their imports, and employee-level Estonian manufacturing services employers 2006–2018. We define using imports intermediates embedding technologies. effect estimated simple Mincerian wage equations causality validated propensity score matching. find that introducing enlarges negative importing female employees two to four percentage points larger than male employees. matching confirms introduction has higher causal wages