Featured Lendület Researcher: Balázs Reizer

Hungarian workers still earn significantly less than their Western counterparts. In order for this situation to change, it is essential to uncover the underlying causes of this phenomenon. This is the task undertaken by Balázs Reizer, Senior Research Fellow at the ELTE Centre for Economic and Regional Studies and Head of the Momentum Technology and Inequality Research Group, together with his colleagues. With his team, he is investigating what Hungarian workers actually do during their working hours and how the innovative transformation and robotisation of production affect workers in different job roles.

2026. március 25.

People often wonder why, for example, an employee in Germany earns significantly more than a Hungarian employee in the same position. Some hold the view that this is partly due to the fact that German employees work more efficiently and, when at work, get more done while spending less time on activities unrelated to their job. However, no one knows for sure if this is actually the case, as no targeted research has been conducted on this topic yet.

Balázs Reizer Photo: kti.krtk.hu

Reizer and his colleagues at the ELTE Centre for Economic and Regional Studies therefore began several years ago to seek funding for a survey that could measure what Hungarian employees actually do in their workplaces. These efforts eventually developed into the researcher’s Lendület grant-winning research project.

The Impact of Robotisation and Technological Innovation

“As we delved deeper into the study of employment, technology, and job tasks, we realised that the measurement methods used previously were inadequate and could not answer many questions,” said Reizer. “For example, many people agree that technology and automation reduce industrial employment, but this does not explain why wage inequalities within professions are growing.

We know very little about how robotisation and technological innovation affect individual employees at a company.

It certainly affects blue-collar workers on the production line differently than it does office workers. This is also very important from a public policy perspective, as it enables the government to support innovative companies in their search for labour.”

To answer these questions, researchers require three types of information, which they will obtain through cooperation with the Hungarian Central Statistical Office. The first concerns what people actually do at their workplaces, which must be established through questionnaires. Another piece of information, which can be obtained from government records, relates to the career paths employees have followed in the labour market – that is, how much they earned at various companies. This can then be compared with their activities at work, allowing conclusions to be drawn about how the work of people in different positions evolves at their workplaces and how their use of time at work changes. The third type of information relates to the innovative activities they engage in and the technological solutions they use. This is regularly surveyed by national statistical offices on behalf of Eurostat.

What about the employees?

“These data points have existed separately in several countries before. However, if we could connect these three different types of information, we could gain insights into how, for example, a company’s implementation of an enterprise resource planning system affects the tasks, wages, and employment of white-collar workers,” continued the research group leader. “This is particularly timely because more and more companies are going to innovate at the organisational level. We assume that the companies that implement this will become more productive and thus contribute more to economic growth. But it would be good to know what will happen to their employees in the process.”

Although it is often argued in favour of robotisation that this form of innovation does not render human jobs redundant, on the contrary, creates positions requiring higher levels of skill,

in reality very little is known about the actual future impact of these developments on the labour market.

Researchers and consulting firms specialising in forecasting attempt to draw conclusions about the effects of technological progress based on various assumptions, but we really do not know what form the labour market will take in ten or fifteen years. “The labour market in Hungary is currently very tight, so it’s very difficult to hire new workers. It’s much easier to try to retrain someone within the company and reassign them to tasks for which they cannot hire new people,” argued Reizer. “There is a labour shortage in every job category, but especially in white-collar positions. There are very few college graduates in Hungary. The belief that there are few skilled workers is merely the result of misinterpreted statistics. Within the European Union, the proportion of university graduates in Hungary is among the lowest, yet the wage premium for college graduates is the highest. This amounts to more than 70%, whereas in Austria, for example, the comparable figure is only around 20–30%. In other words, there is a distinct shortage of college-educated workers in Hungary, and if we want the economy to grow and people to become more prosperous overall, resources need to be invested in developing people’s skills.”

Possible Scenarios

Most Anglo-Saxon researchers believe that robotisation will reduce employment. In contrast, researchers in continental Europe – particularly in Germany and France – argue that if a company introduces robots, it becomes much more productive, able to produce more for less money or at lower cost. As a result, the company will grow and create new jobs. Thus, the additional labour demand resulting from increased efficiency will compensate for the jobs that are lost. According to Reizer, however, it is impossible to know at this moment what will actually happen, as these assumptions are merely speculation. There will certainly be examples of both scenarios.

Since the use of employees’ time at work is measured via questionnaire (self-reporting) – that is, how much they actually work and what portion of their working hours they spend doing something else, that is, showing low “work engagement” – the question arises as to how reliable these measurements are. After all, it may be assumed that people are not particularly eager to admit that out of the eight hours they spend at work, they spend five chatting with colleagues in the hallway. According to Reizer, however – somewhat surprisingly – these surveys nevertheless provide a more or less realistic picture of workplace activity. The questionnaires have confirmed, for example, that those paid by the hour generally spend more time “not working”, and the same tends to occur when a company receives fewer orders.

“We usually ask about aspects of work performance that employees have no real incentive to misrepresent.

For example, a very important question is what proportion of their working time consists of monotonous, repetitive physical labour and what proportion involves intellectual tasks. This can explain, for example, the very large wage disparities within the same occupations,” said Reizer. “Perhaps what I am most hoping this project will reveal is why, for example, some lathe operators earn a great deal while the average wage in the profession is low. We assume that this is because they are much more qualified, more skilled, and perform more complex tasks than most. If we want to move beyond the current situation where a significant portion of Hungarian industry functions merely as an assembly plant, then the number of complex, high-value-added jobs needs to be increased.”