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New Technologies and Jobs in Europe

Author

Listed:
  • Jimeno, Juan Francisco
  • Albanesi, Stefania
  • Dias da Silva, Antonio
  • Lamo, Ana
  • Wabitsch, Alena

Abstract

We examine the link between labour market developments and new technologies such as artificial intelligence (AI) and software in 16 European countries over the period 2011-2019. Using data for occupations at the 3-digit level in Europe, we find that on average employment shares have increased in occupations more exposed to AI. This is particularly the case for occupations with a relatively higher proportion of younger and skilled workers. This evidence is in line with the Skill Biased Technological Change theory. While there exists heterogeneity across countries, only very few countries show a decline in employment shares of occupations more exposed to AI-enabled automation. Country heterogeneity for this result seems to be linked to the pace of technology diffusion and education, but also to the level of product market regulation (competition) and employment protection laws. In contrast to the findings for employment, we find little evidence for a relationship between wages and potential exposures to new technologies.

Suggested Citation

  • Jimeno, Juan Francisco & Albanesi, Stefania & Dias da Silva, Antonio & Lamo, Ana & Wabitsch, Alena, 2023. "New Technologies and Jobs in Europe," CEPR Discussion Papers 18220, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18220
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    More about this item

    Keywords

    Artificial intelligence; Employment; Skills; Occupations;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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