Related papers: Resolving the automation paradox: falling labor sh…
Automation raises productivity and reduces paid human labor, but it also reallocates income and ownership claims. This paper studies that tradeoff in a static benchmark and in a stationary heterogeneous-agent general equilibrium. Firms…
This paper examines whether artificial intelligence (AI) acts as a substitute or complement to human labour, drawing on 12 million online job vacancies from the United States spanning 2018-2023. We adopt a two-pronged approach: first,…
The uniqueness of human labour is at question in times of smart technologies. The 250 years-old discussion on technological unemployment reawakens. Prominently, Frey and Osborne (2017) estimated that half of US employment will be automated…
This paper explores how artificial intelligence (AI) and robotics are transforming the global labor market. Human workers, limited to a 33% duty cycle due to rest and holidays, cost $14 to $55 per hour. In contrast, digital labor operates…
This study examines the relationship between automation and income inequality across different countries, taking into account the varying levels of technological adoption and labor market institutions. The research employs a panel data…
Technological change is responsible for major changes in the labor market. One of the offspring of technological change is the SBTC, which is for many economists the leading cause of the increasing wage inequality. However, despite that the…
This paper develops a unified framework for evaluating the optimal degree of task automation. Moving beyond binary automate-or-not assessments, we model automation intensity as a continuous choice in which firms minimize costs by selecting…
This paper proposes a novel productivity estimation model to evaluate the effects of adopting Artificial Intelligence (AI) components in a production chain. Our model provides evidence to address the "AI's" Solow's Paradox. We provide (i)…
This study investigates the labor market consequences of AI by analyzing near real-time changes in employment status and work hours across occupations in relation to advances in AI capabilities. We construct a dynamic Occupational AI…
The era of technological change entails complex patterns of changes in wages and employment. We develop a unified framework to evaluate the effects of capital-embodied technological change on, as well as the contributions of factor inputs…
This paper develops a new framework to analyze the incidence of labor market shocks, focusing on automation and artificial intelligence. Central to our theory is the distance-dependent elasticity of substitution (DIDES), where worker…
Current AI systems are better than humans in some knowledge dimensions but weaker in others. Guided by the long-standing vision of machine intelligence inspired by the Turing Test, AI developers increasingly seek to eliminate this "jagged"…
This review seeks to present a comprehensive picture of recent discussions in the social sciences of the anticipated impact of AI on the world of work. Issues covered include technological unemployment, algorithmic management, platform work…
The rise of Artificial General Intelligence (AGI) marks an existential rupture in economic and political order, dissolving the historic boundaries between labor and capital. Unlike past technological advancements, AGI is both a worker and…
If AI displaces human workers faster than the economy can reabsorb them, it risks eroding the very consumer demand firms depend on. We show that knowing this is not enough for firms to stop it. In a competitive task-based model, demand…
In recent years, it has been debated whether a reduction in working hours would be a viable solution to tackle the unemployment caused by technological change. The improvement of existing production technology is gradually being seen to…
The objective of the paper is to understand the role of workers bargaining for the labor share in transition economies. We rely on a share-capital schedule, whereby workers bargaining power is represented as a move off the schedule.…
The emergence of artificial intelligence and robotics is catalyzing a profound transformation in the nature of human labor, fueling a contentious debate about the future of employment. While prominent studies predict substantial job…
We examine whether substantial AI automation could accelerate global economic growth by about an order of magnitude, akin to the economic growth effects of the Industrial Revolution. We identify three primary drivers for such growth: 1) the…
We investigate whether and why people might adjust compensation for workers who use AI tools. Across 13 studies (N = 4,956), participants consistently lowered compensation for workers who used AI compared to those who did not. This "AI…