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New Technologies and Jobs in Europe

Author

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  • Stefania Albanesi

    (Department of Economics, University of Miami)

Abstract

We examine the link between labour market developments and new technologies such as artificial intelligence (AI) and software in 16 European countries over the period 2011- 2019. Using data for occupations at the 3-digit level in Europe, we find that on average employment shares have increased in occupations more exposed to AI. This is particularly the case for occupations with a relatively higher proportion of younger and skilled workers. This evidence is in line with the Skill Biased Technological Change theory. While there exists heterogeneity across countries, only very few countries show a decline in employment shares of occupations more exposed to AI-enabled automation. Country heterogeneity for this result seems to be linked to the pace of technology diffusion and education, but also to the level of product market regulation (competition) and employment protection laws. In contrast to the findings for employment, we find little evidence for a relationship between wages and potential exposures to new technologies.

Suggested Citation

  • Stefania Albanesi, 2023. "New Technologies and Jobs in Europe," Working Papers 2023-01, University of Miami, Department of Economics.
    • Handle: RePEc:mia:wpaper:wp2023-01
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    Cited by:

    1. Raphael Auer & David Köpfer & Josef Sveda, 2024. "The rise of generative AI: modelling exposure, substitution and inequality effects on the US labour market," BIS Working Papers 1207, Bank for International Settlements.
    2. Roberto Roson & Emanuela Ghignoni, 2023. "A Numerical Simulation of Educational Mismatch in the Italian Labor Market," Working Papers in Public Economics 241, Department of Economics and Law, Sapienza University of Rome.
    3. Stefania Albanesi & António Dias da Silva & Juan F. Jimeno & Ana Lamo & Alena Wabitsch, 2025. "AI and Women's Employment in Europe," AEA Papers and Proceedings, American Economic Association, vol. 115, pages 46-50, May.
    4. Enrico Maria Fenoaltea & Dario Mazzilli & Aurelio Patelli & Angelica Sbardella & Andrea Tacchella & Andrea Zaccaria & Marco Trombetti & Luciano Pietronero, 2024. "Follow the money: a startup-based measure of AI exposure across occupations, industries and regions," Papers 2412.04924, arXiv.org, revised Dec 2024.
    5. Kauhanen, Antti & Rouvinen, Petri, 2024. "Assessing Early Labor Market Effects of Generative AI - Evidence from Population Data," ETLA Working Papers 121, The Research Institute of the Finnish Economy.
    6. Nikolaos Charalampidis, 2024. "Frictions and the diffusion of automation," Manchester School, University of Manchester, vol. 92(2), pages 148-170, March.
    7. Guarascio, Dario & Reljic, Jelena, 2025. "AI and employment in Europe," Economics Letters, Elsevier, vol. 247(C).
    8. Minniti, Antonio & Prettner, Klaus & Venturini, Francesco, 2025. "AI innovation and the labor share in European regions," European Economic Review, Elsevier, vol. 177(C).
    9. Teutloff, Ole & Einsiedler, Johanna & Kässi, Otto & Braesemann, Fabian & Mishkin, Pamela & del Rio-Chanona, R. Maria, 2025. "Winners and losers of generative AI: Early Evidence of Shifts in Freelancer Demand," Journal of Economic Behavior & Organization, Elsevier, vol. 235(C).
    10. Guarascio, Dario & Reljic, Jelena & Stöllinger, Roman, 2025. "Diverging paths: AI exposure and employment across European regions," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 11-24.
    11. Luca Fontanelli & Flavio Calvino & Chiara Criscuolo & Lionel Nesta & Elena Verdolini, 2024. "The role of human capital for AI adoption: Evidence from French firms," Post-Print hal-05029748, HAL.
    12. José Ignacio Conde-Ruiz & Juan José Ganuza & Manu García & Carlos Victoria, 2024. "La Demanda de Educación Superior ante el Cambio Tecnológico y la Inteligencia Artificial," Studies on the Spanish Economy eee2024-09, FEDEA.

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • 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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