Abstract
This paper examines the impact of new technologies, particularly automation and artificial intelligence (AI), on labor markets. The existing literature documents ambiguous and only limited overall employment effects, while new technologies induce significant shifts in workforce composition. The implied firm-level productivity gains primarily benefit larger, skilled-labor-intensive firms. AI adoption remains limited but continues to reshape skill demands. The implied worker reallocation is costly, exacerbating inequality. This calls for policies such as targeted support for displaced workers, investment in education and skill development, promoting technology diffusion, and encouraging complementary human capital investments.
| Original language | English |
|---|---|
| Pages (from-to) | 335-344 |
| Number of pages | 10 |
| Journal | Economists' Voice |
| Volume | 21 |
| Issue number | 2 |
| Early online date | 20 Aug 2024 |
| DOIs | |
| Publication status | Published - Dec 2024 |
Bibliographical note
Publisher Copyright:© 2024 the author(s), published by De Gruyter.
Funding
This project has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement number 101004494 via the GI-NI consortium. The content of this publication are the sole responsibility of the authors and do not necessarily reflect the opinion of the European Union. This project has received funding from the European Union\u2019s Horizon 2020 research and innovation programme under grant agreement number 101004494 via the GI-NI consortium. The content of this publication are the sole responsibility of the authors and do not necessarily reflect the opinion of the European Union.
| Funders | Funder number |
|---|---|
| Horizon 2020 | |
| European Commission | |
| Horizon 2020 Framework Programme | 101004494 |
Keywords
- artificial intelligence
- digitalization
- inequality
- technology
- unemployment
