AI Unboxed and Jobs: A Novel Measure and Firm-Level Evidence from Three Countries

Erik Engberg, Holger Görg, Magnus Lodefalk, Farrukh Javed, Martin Längkvist, Natália Monteiro, Hildegunn Kyvik Nordås, Giuseppe Pulito, Sarah Schroeder and Aili Tang
Additional contact information
Erik Engberg: The Ratio Institute, Postal: The Ratio Institute, P.O. Box 5095, SE-102 42 Stockholm, Sweden, http://www.ratio.se
Holger Görg: Kiel Institute
Farrukh Javed: Lund University, http://www.lu.se
Martin Längkvist: Örebro University, http://www.oru.se
Hildegunn Kyvik Nordås: http://www.oru.se
Giuseppe Pulito: Berlin School of Economics, http://www.ratio.se
Aili Tang: None, http://www.ratio.se

No 370, Ratio Working Papers from The Ratio Institute

Abstract: We unbox developments in artificial intelligence (AI) to estimate how exposure to these developments affect firm-level labour demand, using detailed register data from Denmark, Portugal and Sweden over two decades. Based on data on AI capabilities and occupational work content, We develop and validate a time-variant measure for occupational exposure to AI across subdomains of AI, including language modelling. According to our model, white collar occupations are most exposed to AI, and espe- cially white collar work that entails relatively little social interaction. We illustrate its usefulness by applying it to near-universal data on firms and individuals from Swe- den, Denmark, and Portugal, and estimating firm labour demand regressions. We find a positive (negative) association between AI exposure and labour demand for high- skilled white (blue) collar work. Overall, there is an up-skilling effect, with the share of white-collar to blue collar workers increasing with AI exposure. Exposure to AI within the subdomains of image and language are positively (negatively) linked to demand for high-skilled white collar (blue collar) work, whereas other AI-areas are heterogeneously linked to groups of workers.

Keywords: Artificial intelligence; Labour demand; Multi-country firm-level evidence (search for similar items in EconPapers)
JEL-codes: E24 J23 J24 N34 O33 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2023-12-27
New Economics Papers: this item is included in nep-bec, nep-eur, nep-ino, nep-lma and nep-sbm
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Related works:
Working Paper: AI Unboxed and Jobs: A Novel Measure and Firm-Level Evidence from Three Countries (2024)
Working Paper: AI Unboxed and Jobs: A Novel Measure and Firm-Level Evidence from Three Countries (2024)
Working Paper: AI Unboxed and Jobs: A Novel Measure and Firm-Level Evidence from Three Countries (2023)
Working Paper: AI Unboxed and Jobs: A Novel Measure and Firm-Level Evidence from Three Countries (2023)
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