A new wave of technologies including robots, artificial intelligence, and digital platforms has raised concerns about automation and unemployment, while also bringing optimism that innovation can extend lifespans and improve quality of life. 

This paper is among the first studies using institution–level data to examine service–sector robots, focusing on Japanese nursing homes. 

Using regional variation in robot subsidies as an instrumental variable, we investigated how robot adoption affects staffing outcomes. We found that robot use reduces staffing retention difficulties and increases employment of care workers and nurses under flexible contracts. 

Our results suggest that robots help address challenges from rapid population aging and care–labor shortages, and do not necessarily harm workers or care quality.