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New Technologies: End of Work or Structural Change?

Author

Listed:
  • Rademakers Emilie

    (8125 Utrecht University , Utrecht, The Netherlands)

  • Zierahn-Weilage Ulrich

    (8125 Utrecht University , ZEW, CESifo Network Affiliate, Utrecht, The Netherlands)

Abstract

This paper examines the impact of new technologies, particularly automation and artificial intelligence (AI), on labor markets. The existing literature documents ambiguous and only limited overall employment effects, while new technologies induce significant shifts in workforce composition. The implied firm-level productivity gains primarily benefit larger, skilled-labor-intensive firms. AI adoption remains limited but continues to reshape skill demands. The implied worker reallocation is costly, exacerbating inequality. This calls for policies such as targeted support for displaced workers, investment in education and skill development, promoting technology diffusion, and encouraging complementary human capital investments.

Suggested Citation

  • Rademakers Emilie & Zierahn-Weilage Ulrich, 2024. "New Technologies: End of Work or Structural Change?," The Economists' Voice, De Gruyter, vol. 21(2), pages 335-344.
    • Handle: RePEc:bpj:evoice:v:21:y:2024:i:2:p:335-344:n:1005
    DOI: 10.1515/ev-2024-0046
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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