Major technological changes have come with an adjustment period of stagnant productivity before the economy operates at its full potential. The mechanism of this adoption process is still not well understood. I document that productivity increases with a five-year lag after the adoption of industrial robots in Brazil. Combining Brazil employer-employee matched data with a novel measure of robot adoption, I document that the short-term effect of robots is not on productivity but on the within-firm organization of labor across occupations. Only when the reorganization of labor stabilizes -about five years later- productivity gains kick in. I estimate a general equilibrium model with heterogeneous firms, endogenous robot adoption, and organizational capital accumulation. The model shows that the organizational capital mechanism explains 20% of the aggregate skills demand change observed in Brazil over the last decade.
Conferences and Seminars: AoM, EEA-ESEM, Harvard Kennedy School, U Toronto, NBER SI, NASMES, SED, GWUSB, U Delaware, U Los Andes, U Queensland, ITAM Business, Banco de México, PUC Chile, Harvard, HBS, Boston U (TPRI), LACEA–LAMES, LACEA–RIDGE, World Bank, Georgetown (Macro, Trade), GU-McDonough (Strategy), AOM (TIM–Doctoral Consortium), Wharton Innovation Doctoral Symposium.