The Labor Market Impact of Artificial Intelligence: Evidence from US Regions

Volume/Issue: Volume 2024 Issue 199

Publication date: September 2024

ISBN: 9798400288555

$20.00

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Topics covered in this book

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Labor , Demography , Artificial intelligence , technology , labor , local labor markets , shift share , middle-skill worker , labor market impact , impact of artificial intelligence , employment effect , low-skill services sectors , Employment , Employment rate , Labor markets , Global

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Summary

This paper empirically investigates the impact of Artificial Intelligence (AI) on employment. Exploiting variation in AI adoption across US commuting zones using a shift-share approach, I find that during 2010-2021, commuting zones with higher AI adoption have experienced a stronger decline in the employment-to-population ratio. Moreover, this negative employment effect is primarily borne by the manufacturing and lowskill services sectors, middle-skill workers, non-STEM occupations, and individuals at the two ends of the age distribution. The adverse impact is also more pronounced on men than women.