Exploring the future impact of automation in Brazil
ISSN: 0142-5455
Article publication date: 25 January 2021
Issue publication date: 13 July 2021
Abstract
Purpose
Brazil is struggling as the unemployment rate is 12.4% and nearly 13m people are unemployed. The fourth Industrial Revolution is advancing, and the country needs to consider how it will impact the labor market. This work explores the impact of automation on the Brazilian workforce to supply decision-makers with information about the subject.
Design/methodology/approach
The authors converted the probability of computerization from the seminal work of Frey and Osborne to each of the more than 2,500 occupations in Brazil. They then crossed the automation probability with socioeconomic information about workers and companies available in the Brazilian Ministry of Labor Database.
Findings
In total, 60% of employment in Brazil is expected to be highly impacted by automation in the coming decades, with eight out of the ten occupations with the biggest workforce being highly automatable. Automation probability decreases as workers' education level increases, with the most significant difference between workers with higher education and those without it. The results show other inequalities in the impact of automation: the higher the wage, the lower the automation probability of occupations; the bigger the company, the lower the automation index; and workers from 16 to 24 years old have considerably higher chances of being automated.
Originality/value
This work is the first to study, in the context of the fourth Industrial Revolution, the impact of automation in Brazil with a socioeconomic analysis.
Keywords
Acknowledgements
The authors would like to thank Aguinaldo Nogueira Maciente from IPEA for kindly sharing data from his research with us.Funding: This study was financed in part by the Coordenação de Aperfeiçoamento de Pessoal de Nível Superior – Brasil (CAPES) – Finance Code 001.
Citation
Lima, Y., Strauch, J.C.M., Esteves, M.G.P., de Souza, J.M., Chaves, M.B. and Gomes, D.T. (2021), "Exploring the future impact of automation in Brazil", Employee Relations, Vol. 43 No. 5, pp. 1052-1066. https://doi.org/10.1108/ER-08-2020-0364
Publisher
:Emerald Publishing Limited
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