Artificial Intelligence and the Productivity-Pay Gap in the USA: Industrial Insights and the Revival of Heterodox Ideas

Kosta Josifidis and Novica Supic

Journal of Economic Issues, 2024, vol. 58, issue 2, 540-548

Abstract: This article aims to offer a heterodox perspective on the productivity-pay gap in the United States in light of the ongoing disruptive changes within leading industries driven by the widespread adoption of artificial intelligence (AI). We present robust arguments that the application of AI-type technologies across various industries and domains is likely to not only exacerbate the existing productivity-pay gap but also change the way this gap is generated. We suggest that deploying decision-making AI algorithms in economic processes could empower capital-technology owners at the expense of the traditional managerial technostructure, potentially re-establishing the possession of capital as the main driver of income inequality. In addressing the potential economic and social costs of the current trajectory of AI technologies, some of the major concepts in heterodox economics may prove useful.

Date: 2024
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DOI: 10.1080/00213624.2024.2344434

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