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New Technologies and Jobs in Europe

Author

Listed:
  • Stefania Albanesi
  • António Dias da Silva
  • Juan F. Jimeno
  • Ana Lamo
  • Alena Wabitsch

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 & António Dias da Silva & Juan F. Jimeno & Ana Lamo & Alena Wabitsch, 2023. "New Technologies and Jobs in Europe," NBER Working Papers 31357, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31357
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Nikolaos Charalampidis, 2024. "Frictions and the diffusion of automation," Manchester School, University of Manchester, vol. 92(2), pages 148-170, March.
    5. Minniti, Antonio & Prettner, Klaus & Venturini, Francesco, 2025. "AI innovation and the labor share in European regions," European Economic Review, Elsevier, vol. 177(C).
    6. 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).
    7. 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.
    8. Roberto Roson & Emanuela Ghignoni, 2023. "A Numerical Simulation of Educational Mismatch in the Italian Labor Market," Working Papers 2023: 15, Department of Economics, University of Venice "Ca' Foscari".
    9. 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.
    10. 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.
    11. 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.
    12. Guarascio, Dario & Reljic, Jelena, 2025. "AI and employment in Europe," Economics Letters, Elsevier, vol. 247(C).
    13. Aldasoro, Iñaki & Gambacorta, Leonardo & Pal, Rozalia & Revoltella, Debora & Weiss, Christoph & Wolski, Marcin, 2026. "AI adoption, productivity and employment: Evidence from European firms," EIB Working Papers 2026-02, European Investment Bank (EIB).
    14. Duran Vanegas, Juan & Tuda, Dora, 2025. "The impact of AI exposure on labour market outcomes and well-being: Evidence from Australia," Papers WP808, Economic and Social Research Institute (ESRI).

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • 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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