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1. Robots and Labor in the Service Sector: Evidence from Nursing Homes

Author:
Karen Eggleston, Yong Suk Lee, and Toshiaki Lizuka
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
In one of the first studies of service sector robotics using establishment-level data, we study the relationship between robots and staffing in Japanese nursing homes. We utilize variation in robot subsidies across prefectures as an instrumental variable to explore the impact of robot adoption on nursing homes’ staffing decisions. We find that robot adoption appears to decrease difficulty in staff retention and to increase employment by augmenting the number of care workers and nurses on flexible employment contracts. Robot adoption is negatively correlated with the monthly wages of regular nurses, consistent with reduced burden of care such as fewer night shifts. Our findings suggest that robots may not be detrimental to labor and may help to remedy challenges posed by rapidly aging populations.
Topic:
Science and Technology, Labor Issues, Services, Innovation, Artificial Intelligence, Robotics, Emerging Technology, and Labor Cost
Political Geography:
Global Focus

2. A quarter century of ‘The Proper Scope of Government’: Theory and Applications

Author:
Oliver Hart
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
A quarter-century ago in a seminal paper, Hart, Shleifer, and Vishny (NBER1996, QJE1997) developed a theory of the ‘Proper Scope of Government.’ Oliver Hart, 2016 Nobel Laureate, reflects on that framework and its place in economics, as well as the inspiration for his more recent work on norms, guiding principles, and contracts as reference points. In discussion with Karen Eggleston, Hart answers questions posed by economists who have built upon Hart, Shleifer and Vishny (1997) and offers insights on how the theory applies to understanding public and private roles in healthcare, education, and other publicly-financed services.
Topic:
Education, Privatization, Political Theory, Governance, Health Care Policy, Social Services, and Public Service
Political Geography:
Global Focus