Mitigating the impact of robotisation on the European labour markets: The role of trade unions

Abstract

This study examines micro-level data on 24.5 million workers across 15 European countries (2006–2018) to assess the role of trade unions (measured through collective bargaining coverage and trade union density) in moderating the effects of robot adoption on wages and employment. We analyse heterogeneity across gender, education and age. The findings indicate that robotisation is negatively associated with wage growth, but higher union density tends to mitigate this relationship. Robotisation is also linked to employment rate declines in countries with low values of both union proxies, whereas in countries with stronger collective bargaining institutions, this association is considerably weaker. Medium-educated workers appear to benefit most from greater union power. Results highlight the potentially important role of trade unions in moderating the adverse labour market effects of robotisation.