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Artificial Intelligence, Hiring and Employment: Job Postings Evidence from Sweden

Author

Listed:
  • Engberg, Erik

    (The Ratio Institute)

  • Hellsten, Mark

    (The Ratio Institute)

  • Javed, Farrukh

    (The Ratio Institute)

  • Lodefalk, Magnus

    (The Ratio Institute)

  • Sabolová, Radka

    (The Ratio Institute)

  • Schroeder, Sara

    (The Ratio Institute)

  • Tang, Aili

    (The Ratio Institute)

Abstract

This paper investigates the impact of artificial intelligence (AI) on hiring and employment, using the universe of job postings published by the Swedish Public Employment Service from 2014-2022 and universal register data for Sweden. We construct a detailed measure of AI exposure according to occupational content and find that establishments exposed to AI are more likely to hire AI workers. Survey data further indicate that AI exposure aligns with greater use of AI services. Importantly, rather than displacing non-AI workers, AI exposure is positively associated with increased hiring for both AI and non-AI roles. In the absence of substantial productivity gains that might account for this increase, we interpret the positive link between AI exposure and non-AI hiring as evidence that establishments are using AI to augment existing roles and expand task capabilities, rather than to replace non-AI workers.

Suggested Citation

  • Engberg, Erik & Hellsten, Mark & Javed, Farrukh & Lodefalk, Magnus & Sabolová, Radka & Schroeder, Sara & Tang, Aili, 2024. "Artificial Intelligence, Hiring and Employment: Job Postings Evidence from Sweden," Ratio Working Papers 380, The Ratio Institute.
    • Handle: RePEc:hhs:ratioi:0380
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    References listed on IDEAS

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    1. Edward W. Felten & Manav Raj & Robert Seamans, 2018. "A Method to Link Advances in Artificial Intelligence to Occupational Abilities," AEA Papers and Proceedings, American Economic Association, vol. 108, pages 54-57, May.
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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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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