Working Paper: NBER ID: w31357
Authors: Stefania Albanesi; António Dias da Silva; Juan F. Jimeno; Ana Lamo; Alena Wabitsch
Abstract: We examine the link between labour market developments and new technologies such as artificial intelligence (AI) and software in 16 European countries over the period 2011- 2019. Using data for occupations at the 3-digit level in Europe, we find that on average employment shares have increased in occupations more exposed to AI. This is particularly the case for occupations with a relatively higher proportion of younger and skilled workers. This evidence is in line with the Skill Biased Technological Change theory. While there exists heterogeneity across countries, only very few countries show a decline in employment shares of occupations more exposed to AI-enabled automation. Country heterogeneity for this result seems to be linked to the pace of technology diffusion and education, but also to the level of product market regulation (competition) and employment protection laws. In contrast to the findings for employment, we find little evidence for a relationship between wages and potential exposures to new technologies.
Keywords: Artificial Intelligence; Labor Market; Employment; Wages; Europe
JEL Codes: E24; J21; J31; O30; O33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| AI exposure (C45) | employment shares (J54) |
| AI exposure (C45) | high-skilled employment share (J24) |
| AI exposure (C45) | low and medium skill terciles employment shares (J49) |
| software exposure (C88) | employment changes (pooled sample) (J63) |
| accumulation of human capital (J24) | integration of new technologies (O36) |