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

The Labor Market Impact of Artificial Intelligence: Evidence from US Regions
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Volume/Issue: Volume 2024 Issue 199
Publication date: September 2024
ISBN: 9798400288555
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Labor , Demography , Employment , Labor markets , Employment rate , Artificial intelligence , Artificial intelligence , technology , labor , local labor markets , shift share

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.