Public Policy Responses to AI

Andreas Schaefer () and Maik Schneider
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Andreas Schaefer: University of Bath

No 2024-06, Graz Economics Papers from University of Graz, Department of Economics

Abstract: With the 4th Industrial Revolution ahead there is huge uncertainty about the likely labour market impacts ranging from massive layoffs as a response to Automation and AI to the view that overall more jobs will be created than lost. Whatever the outcome in the end, there will be major structural change with substantial implications for individual labour income risk. We argue that precautionary savings are an ineffective protection against labour market risk arising from major technological shifts and discuss four policy instruments, 1) a private insurance scheme, 2) a universal basic income, 3) a robot tax, and 4) a governmental insurance scheme. Further, we examine whether these policy instruments are suitable to achieve high and inclusive growth.

Keywords: Artificial Intelligence; Economic Growth; Endogenous Technological Change; Industrial Revolution; Robot Tax; Universal Basic Income. (search for similar items in EconPapers)
JEL-codes: H20 O33 O38 (search for similar items in EconPapers)
Date: 2024-01
New Economics Papers: this item is included in nep-ain, nep-ino, nep-pbe and nep-tid
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