Robotisation, Employment and Income. The Role of Firms’ Size in the Euro Area Regions

This paper examines whether firm size shapes how robotisation affects labour markets, using data for 113 Eurozone regions between 2002 and 2017. Spatial panel analysis reveals that robotisation tends to depress household income growth, although this effect is not observed in regions dominated by very large firms. Employment variation rates remain largely unaffected across firm sizes, suggesting workforce reallocation towards lower-quality jobs. Large firms improve income and employment only where robotisation exposure is substantial; when exposure is limited, they may suppress wages through monopsony power. Results highlight the role of regional production structures and underscore the need for place-based policies.