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We study the impact of a recent digital automation technology – industrial robotics – on the distribution of sales, productivity, mark-ups, and profits within industries. Our empirical analysis combines data on the industry-level stock of industrial robots with firms' balance sheet data for six European countries from 2004 to 2013. We find that robots disproportionally raise productivity in those firms that are already most productive to begin with. Those firms are able to increase their mark-ups and overall profits, while they tend to decline for less profitable firms within the same industry, country, and year. We also show that robots contribute to the falling aggregate labour income share through a rising concentration of industry sales in highly productive firms with low firm-specific labour shares. In sum, our paper suggests that robots boost the emergence of superstar firms within European manufacturing, and thereby shifts the functional income distribution away from wages and towards profits.

CRESME, the Italian partner of the Austrian Institute of Economic Research (WIFO), kindly invites to the 92nd Euroconstruct Conference on 11 and 12 November 2021. The biennial event will focus on questions like: How does the construction industry get out of the pandemic? Are labour shortages, disrupted supply chains and rising material prices hampering the economic recovery in the European construction industry? How do the individual subsectors of the construction industry develop until 2024? – The event will take place in Verona, Italy and there will be a webcast due to the ongoing challenging health situation in Europe. Join this (online) conference and benefit from numerous advantages, such as first-hand information about the construction markets from the Euroconstruct members and other experts. As an added bonus, all participants will receive the Euroconstruct Summary Report before the official sale date on 17 November 2021. For more details on the event, please visit our conference website.

In order to make the importance of tourism for the regional economy in Austria tangible, Statistics Austria and WIFO have compiled Tourism Satellite Accounts (R-TSA) for eight provinces on behalf of the respective provincial governments or provincial tourism organisations. In an online workshop for journalists, the main results for the base year 2018 as well as a first estimate for 2019 on the spending volume of tourists, the value added of tourism in the individual provinces and the contribution of tourism to regional employment will be presented. The key figures represent the level before the COVID-19 pandemic and will thus be able to provide information in the future on the effect the crisis had on tourism in the various regions of Austria.

Research question(s): What is the individual-level consequences of job insecurity, and how can these be explained? • Approach (empirical or theoretical models, simulation, etc.): This talk will give an overview over psychological research on job insecurity and its multiple consequences for individuals. It will focus foremostly on perceived subjective job insecurity embedded in an economic and regional context and offer psychological models to better understand its consequences. • Data (if empirical, what data is used; level of aggregation; most important variables): The talk will mostly draw on longitudinal quantitative surveys conducted among employees of different occupations and with different levels of job insecurity. It will also include findings of country-level/regional surveys and experimental studies to highlight the contextual influence on individual perception. Issues of endogeneity will be discussed. • Main result(s): Subjectively perceived job insecurity has mainly detrimental health and organizational behavioural outcomes, and certainly no motivational potential. Moreover, due to its identity threatening aspect, job insecurity can affect outcomes also outside work, including political attitudes and tolerance towards others. • Policy implication(s) (if any): Policymakers need to be aware that a rise in perceived job insecurity will bring detrimental health and performance consequences and might also undermine people's political attitudes and trust in the state over the longer term.

Research question(s): Does the inclusion of non-robotising sectors lead to a bias in the estimation of robotisation effects on productivity, prices and labour market outcomes when analysing industry level data? • Approach: Empirical estimation using OLS, Panel-Data-, and Instrumental Variable Regression. • Data: Country-industry level data on robot adoption from the International Federation of Robotics (IFR) merged with EU-Klems-data on productivity, prices, and labour market outcomes. • Main result(s): Restricting the estimation sample to sectors which actually experience relevant changes in robotisation (i.e. removing non-robotising sectors) leads to firstly, a reduction in the size of the estimated productivity effects, secondly, no significant effect on prices, and thirdly, drastically changes the estimated employment and wage effects.

Research question(s): How could different (technology) pathways to a near-climate neutral industry by 2045 look like? – What role does the use of electricity and hydrogen play in the different scenarios? – What are the challenges in individual sectors (e.g. basic chemicals)? – What are the priorities for the transformation until 2030? • Approach: "Forecast" is a bottom-up energy demand model that depicts the technology structure of industry and maps industrial energy consumption, emissions, and costs at the process level. Furthermore, technology areas such as electric motors, industrial furnaces, space heating and steam generation are modelled separately. • Main result(s): The four scenarios show alternative paths to almost CO₂-neutral industrial production by 2045 – at least 95 percent by 2045 compared to 1990. They include ambitious changes to the entire industrial production system and assume a profound transformation in many sectors and value chains. In order for the transition to CO₂-neutral industrial production by 2045 to succeed, the time horizon until 2030 is crucial. • Policy implication(s): The current German policy mix is not sufficient to achieve sufficient reductions in the medium term and, above all, does not provide sufficient incentives for the fundamental long-term transformation. A successful industrial transformation therefore requires an adjustment of the regulatory framework (CCfDs, EU-ETS minimum price paths, establishment of green lead markets, etc.).

This discussion event provides an overview of econometric methods for the causal estimation of funding effects in the field of research, technology and innovation policy evaluations. The following international experts have been recruited for the event: Dirk Czarnitzki (ZEW – Leibniz Centre for European Economic Research), Hanna Hottenrott (Technical University of Munich), Jens Storm (Office for Data Analysis, Ministry of Higher Education and Science, Denmark), Theo J.A. Roelandt (DG Enterprise & Innovation, Dutch Ministry of Economic Affairs).

During the last decade, the Austrian labour market experienced a substantial outward shift of the Beveridge curve. Using detailed administrative data on vacancies and registered unemployed by region and skill level, we test which factors caused this shift. We find that the Beveridge curve shifted primarily because mismatch increased substantially. Looking on the regional and skill dimension of mismatch unemployment, we find a substantial increase of mismatch unemployment for manual routine tasks as well as for the region of Vienna.