IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/14824.html

Regulating AI Displacement: Public Demand, Institutional Credibility, and the Politics of Employment Protection in Latin America

Author

Listed:
  • Rosino, Maria Victoria
  • Scartascini, Carlos

Abstract

How citizens want artificial intelligence (AI) regulated will shape which AI governance instruments are politically feasible. Yet we know little about public preferences over AI policy in middle-income democracies, where state capacity is contested. This paper provides the first multi-country experimental evidence on preferences over AI labordisplacement policy instruments in middle-income democracies. Using a randomized framing experiment in a sur-vey of Argentina, Brazil, Colombia, and Mexico, we examine how citizens map beliefs about AI-driven job disruption into demand for three governance responses: worker-retention reg-ulation, tax-financed redistribution to displaced workers, or non-intervention. Nearly three-quarters of respondents prefer employment-preserving regulation, about one in twenty favors tax-financed redistribution, and one-fifth prefer nonintervention. A three-arm framing taxonomy spanning alarmist, delayed-threat, and task reallocation narratives produces no average shift in this distribution, and the heterogeneous effects we detect at the margin run from non-intervention toward regulation, not toward redistribution. The pattern is consistent with preferences anchored in priors about the state's redistributive capacity rather than in correctable beliefs about AI, with direct implications for AI governance design in low-credibility institutional environments. A within-survey wording experiment on employment protection regulation elicits a substantial shift in preferences among the same respondents, indicating that the null on the AI framings is not an artifact of respondent inattention.

Suggested Citation

  • Rosino, Maria Victoria & Scartascini, Carlos, 2026. "Regulating AI Displacement: Public Demand, Institutional Credibility, and the Politics of Employment Protection in Latin America," IDB Publications (Working Papers) 14824, Inter-American Development Bank.
  • Handle: RePEc:idb:brikps:14824
    DOI: http://dx.doi.org/10.18235/0014583
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/Regulating-AI-Displacement-Public-Demand-Institutional-Credibility-and-the-Politics-of-Employment-Protection-in-Latin-America.pdf
    Download Restriction: no

    File URL: https://libkey.io/http://dx.doi.org/10.18235/0014583?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:14824. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.