impact on total employment as well. Second, results are similar using the instrument directly as a regressor, in place of the endogenous ETR (see Table A6 in the Appendix).

Table A7 experiments with alternative calculations of standard errors. Square brackets include shift-share errors, computed as in Adao et al. (2019). As expected, shift-share errors are larger than the robust errors of the baseline specification, but the level of significance of the coefficients remains roughly the same.

Round brackets include province-level clustered errors, which are systematically smaller of both baseline robust and shift-share errors. This is likely to be due to the low number of clusters available of 26 provinces.<sup>35</sup> Table 12: Regency-level results: employment and wages, total and manufacturing sector

|Change 2008-2015 of:|(1)<br>Total<br>employment|(2)<br>Total<br>wages|(3)<br>Manufacturing<br>employment|(4)<br>Manufacturing<br>wages|(5)<br>Production<br>employment|(6)<br>Production<br>wage|(7)<br>Non-production<br>employment|(8)<br>Non-production<br>wage|
|---|---|---|---|---|---|---|---|---|
|Regency ETR (GM)|0.022|0.053***|0.059**|0.035|0.050*|0.021|0.169**|0.123**|
|(change 2008-2015)|(0.014)|(0.019)|(0.028)|(0.025)|(0.028)|(0.023)|(0.073)|(0.059)|
|Observations|276|276|276|275|276|275|193|139|
|Province FE|yes|yes|yes|yes|yes|yes|yes|yes|
|District demand shifter|yes|yes|yes|yes|yes|yes|yes|yes|
|District base year covariates|yes|yes|yes|yes|yes|yes|yes|yes|
|First stage F-stat|14.89|14.89|14.89|14.79|14.89|14.79|14.25|12.46|

The table presents 2SLS estimates of the relationship between regency-level exposure to robots and employment. Exposure to robots is instrumented with the average exposure in the OECD region. The dependent variables are the 2008-2015 differences of log of employment (total or manufacturing) in each regency. The regency demand shifter is regency-level average global exports excluding Indonesia. Base year regency covariates include: i) population; ii) the shares of workers with tertiary and no education (separately); iii) real output per capita, and iv) the share of manufacturing employment. Standard errors are clustered at the regency-level. Weights are constructed using 2007 (base year) regency population. The coefficients with<sup>_⋆⋆⋆_</sup> are significant at the 1% level, with<sup>_⋆⋆_</sup> are significant at the 5% level, and with<sup>_⋆_</sup> are significant at the 10% level.

Table 13: Regency-level results: employment and wages in non-manufacturing sectors

|Change 2008-2015 of:|(1)<br>Services<br>employment|(2)<br>Services<br>wages|(3)<br>Cons/Util<br>employment|(4)<br>Cons/Util<br>wages|(5)<br>Agr/Mining<br>employment|(6)<br>Agr/Mining<br>wages|
|---|---|---|---|---|---|---|
|Regency ETR (GM)|0.027*|0.052***|0.001|0.037|-0.095***|0.119|
|(change 2008-2015)|(0.016)|(0.017)|(0.028)|(0.044)|(0.031)|(0.108)|
|Observations|276|276|276|229|276|238|
|Province FE|yes|yes|yes|yes|yes|yes|
|District demand shifter|yes|yes|yes|yes|yes|yes|
|District base year covariates|yes|yes|yes|yes|yes|yes|
|First stage F-stat|14.89|14.89|14.89|12.58|14.89|12.81|

The table presents 2SLS estimates of the relationship between regency-level exposure to robots and employment. Exposure to robots is instrumented with the average exposure in the OECD region. The dependent variables are the 2008-2015 differences in log of employment by sector in each regency. The regency demand shifter is regency-level average global exports excluding Indonesia. Base year regency covariates include: i) population; ii) the shares of workers with tertiary and no education (separately); iii) real output per capita, and iv) the share of manufacturing employment. Standard errors are clustered at the regency-level. Weights are constructed using 2007 (base year) regency population. The coefficients with<sup>_⋆⋆⋆_</sup> are significant at the 1% level, with<sup>_⋆⋆_</sup> are significant at the 5% level, and with<sup>_⋆_</sup> are significant at the 10% level.

> 35This justifies our choice of relegating such specification in the appendix.

35