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Artificial intelligence and labor market outcomes

Author

Listed:
  • Nick Drydakis

    (Anglia Ruskin University, UK, and IZA, Germany)

Abstract

Artificial intelligence (AI) has streamlined processes, improved workforce allocation, and created new jobs to meet the needs of digitalization and automation. Individuals with AI capital experience greater employment opportunities and higher wages, particularly in high-skilled roles and large firms. Training in AI helps reduce gender-based digital disparities, empowers individuals, and enhances their employability. Policymakers should promote inclusive AI development policies to prevent widening AI-related divides and unemployment, and to ensure equitable opportunities.

Suggested Citation

  • Nick Drydakis, 2025. "Artificial intelligence and labor market outcomes," IZA World of Labor, Institute of Labor Economics (IZA), pages 514-514, February.
    • Handle: RePEc:iza:izawol:journl:2025:n:514
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    More about this item

    Keywords

    artificial intelligence; AI; AI capital; employment; wages;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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