AI, Skill, and Productivity: The Case of Taxi Drivers

Kyogo Kanazawa, Daiji Kawaguchi, Hitoshi Shigeoka and Yasutora Watanabe
Additional contact information
Kyogo Kanazawa: Faculty of Economics, The University of Tokyo
Hitoshi Shigeoka: Faculty of Economics, The University of Tokyo, Simon Fraser University, IZA, and NBER
Yasutora Watanabe: Faculty of Economics, The University of Tokyo

No CIRJE-F-1202, CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo

Abstract: We examine the impact of Artificial Intelligence (AI) on productivity in the context of taxi drivers. The AI we study assists drivers with finding customers by suggesting routes along which the demand is predicted to be high. We find that AI improves drivers' productivity by shortening the cruising time, and such gain is accrued only to low-skilled drivers, narrowing the productivity gap between high- and low-skilled drivers by 14%. The result indicates that AI's impact on human labor is more nuanced and complex than a job displacement story, which was the primary focus of existing studies.

Pages: 45 pages
Date: 2022-10
New Economics Papers: this item is included in nep-big
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Citations: View citations in EconPapers (2)

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http://www.cirje.e.u-tokyo.ac.jp/research/dp/2022/2022cf1202.pdf (application/pdf)

Related works:
Working Paper: AI, Skill, and Productivity: The Case of Taxi Drivers (2022)
Working Paper: AI, Skill, and Productivity: The Case of Taxi Drivers (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:tky:fseres:2022cf1202

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