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: Örebro University
Holger Görg: Kiel Institute for the World Economy
Farrukh Javed: Örebro University
Martin Längkvist: Örebro University
Hildegunn Kyvik Nordås: Council on Economic Policies
Giuseppe Pulito: Rockwool Foundation Berlin
Aili Tang: Örebro University

No 16717, IZA Discussion Papers from Institute of Labor Economics (IZA)

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, such as language modelling. According to the model, white collar occupations are most exposed to AI, and especially 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 Sweden, 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: multi-country firm-level evidence; labour demand; artificial intelligence (search for similar items in EconPapers)
JEL-codes: E24 J23 J24 N34 O33 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2024-01
New Economics Papers: this item is included in nep-bec, nep-eur, nep-lma, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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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 (2023)
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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