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

Yueling Huang

No 2024/199, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: Artificial intelligence; technology; labor; local labor markets; shift share; middle-skill worker; labor market impact; impact of artificial intelligence; employment effect; low-skill services sectors; Employment; Employment rate; Labor markets; Global; employment share; industry classification; classification scheme; AI adoption data; industry AI adoption; robot penetration; AI production; employment impact; employment outcome (search for similar items in EconPapers)
Pages: 53
Date: 2024-09-13
New Economics Papers: this item is included in nep-ain, nep-ipr, nep-tid and nep-ure
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