Labour displacement risk index in the face of automation: estimation and analysis

Abstract

This paper estimates an index of the risk of labour displacement in the face of automation, using data
from the National Employment and Occupation Survey (enoe) for the years 2005 and 2019. The results
show that the risk of displacement due to automation has increased in Mexico, and that women face
a lower risk of labour displacement compared to men. It also shows that higher levels of human capital
are associated with a lower risk of displacement. Industrial and clerical workers are most at risk from
automation, and workers in the north of the country face a higher risk than those in the south.
Using the principal components analysis, this work estimates an index of risk of job displacement
in the face of automation, with data from the National Occupation and Employment Survey (enoe) for
the years 2005 and 2019. The results show that job displacement risk has increased in Mexico, and that women face less risk of job displacement when compared to men. They also indicate that higher levels
of human capital promote a lower risk of displacement. Industrial and office workers are those most
at risk from automation, and workers in the north of the country face a greatest risk when compared to
those in the south.