Robots, reshoring, and the lot of low-skilled workers

We propose a theoretical framework to analyze the offshoring and reshoring decisions of firms in age automation. Our theory suggests that increasing productivity automation leads relocation previously offshored production back home economy but without improving low-skilled wages creating jobs for workers. Since it also high-skilled workers, automation-induced is associated with an skill premium inequality. develop measure activity at macro-level and, using data from world input output table, provide evidence automation-driven reshoring. On average, within manufacturing sectors, increase by one robot per 1000 workers 3.5% activity. corroborate results IV regression framework. first cross-country positively employment professional occupations not elementary-routine tariffs intensity.