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The Sum of All (Workplace) Fears: How Managers Mediate the Fear of AI Job Displacement

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Listed:
  • Christos Makridis
  • Christos A. Makridis

Abstract

AI is transforming work, but workers’ responses to these technologies depend not only on exposure to AI, but also on how organizations, especially managers, oversee the transition. Using longitudinal data from the Gallup Workforce Panel from 2023-2026, I examine whether managers and workplace practices shape employees’ fears that AI will eliminate their jobs. Across survey waves, roughly 3-4 percent of workers say their job is very likely to be eliminated within five years because of new technology, automation, robots, or artificial intelligence, while about 14-19 percent say it is somewhat or very likely. Concern is substantially higher among frequent AI users. Stronger workplace practices are associated with lower displacement fear: a one-standard-deviation increase in workplace quality is associated with 13-24 percent lower odds of reporting greater displacement risk, and workers reporting the highest level of organizational wellbeing support are 6-6.8 percentage points less likely to say their job is somewhat or very likely to be displaced in cross-sectional specifications. Frequent AI use is positively associated with perceived displacement risk, with estimates ranging from about 3-12.9 percentage points across the main specifications and reaching 6 percentage points in the most saturated respect model. However, this association is weaker in higher-quality workplace environments: among workers reporting the highest level of organizational wellbeing support, the frequent-AI-use premium is reduced by up to 9.0 percentage points. In short, managers play a central role in shaping how workers interpret AI adoption.

Suggested Citation

  • Christos Makridis & Christos A. Makridis, 2026. "The Sum of All (Workplace) Fears: How Managers Mediate the Fear of AI Job Displacement," CESifo Working Paper Series 12678, CESifo.
  • Handle: RePEc:ces:ceswps:_12678
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    Keywords

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    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • 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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