Industrial automation and local public goods

Thomas Luke Spreen, Ziyuan Wang, Lang Kate Yang · Journal of Public Economics · 26 May 2025

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Abstract

Recent research shows industrial automation raises labor productivity but also depresses employment and wages in exposed industries and regions. This paper examines the impact of automation on U.S. state and local governments. We find that state and local governments with greater exposure to automation experience significant declines in per capita revenues and expenditures. The spending reduction is concentrated in K-12 education and is driven primarily by a decrease in state support. Automation exposure is also associated with a decline in student test scores. These findings suggest that industrial automation impairs state and local financing of public education and student outcomes.

About this publication

Leading field journal. A leading journal in economics or a neighbouring field (on the Tinbergen Institute’s A list or near the top of the RePEc ranking), or a top-rated computer-science venue.

Placed by: Tinbergen Institute A list. How sources are ranked.

Published: 2025 (17 months ago)
Citations: 2 (OpenAlex)

Citations in context

2 citations — 21st percentile among the 33 indexed papers from 2025 in this collection. Citation counts favor older papers; this compares only same-year papers here, not the whole literature.

□ added to this collection in 2026.

Industrial automation and local public goods

Abstract

About this publication

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