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The Labor Market Impact of Digital Technologies

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  • Sangmin Aum
  • Yongseok Shin

Abstract

We investigate the impact of digital technology on employment patterns in Korea, where firms have rapidly adopted digital technologies such as artificial intelligence (AI), big data, and the internet of things (IoT). By exploiting regional variations in technology exposure, we find significant negative effects on high-skill and female workers, particularly those in non-IT (information technology) services. This contrasts with previous technological disruptions, such as the IT revolution and robotization, which primarily affected low-skill male workers in manufacturing. In IT services, although high-skill employment declined, vacancy postings for high-skill workers increased, implying a shift in labor demand toward newer skill sets. These findings highlight both the labor displacement and the new opportunities generated by digital transformation.

Suggested Citation

  • Sangmin Aum & Yongseok Shin, 2025. "The Labor Market Impact of Digital Technologies," NBER Working Papers 33469, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:33469
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    References listed on IDEAS

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    1. Daron Acemoglu & David Autor & Jonathon Hazell & Pascual Restrepo, 2022. "Artificial Intelligence and Jobs: Evidence from Online Vacancies," Journal of Labor Economics, University of Chicago Press, vol. 40(S1), pages 293-340.
    2. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The Skill Content of Recent Technological Change: An Empirical Exploration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(4), pages 1279-1333.
    3. Aum, Sangmin & Lee, Sang Yoon (Tim) & Shin, Yongseok, 2018. "Computerizing industries and routinizing jobs: Explaining trends in aggregate productivity," Journal of Monetary Economics, Elsevier, vol. 97(C), pages 1-21.
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    5. Daron Acemoglu & Pascual Restrepo, 2020. "Robots and Jobs: Evidence from US Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2188-2244.
    6. Simona Abis & Laura Veldkamp, 2024. "The Changing Economics of Knowledge Production," The Review of Financial Studies, Society for Financial Studies, vol. 37(1), pages 89-118.
    7. Ron Adner & Phanish Puranam & Feng Zhu, 2019. "What Is Different About Digital Strategy? From Quantitative to Qualitative Change," Strategy Science, INFORMS, vol. 4(4), pages 253-261, December.
    8. Hyejin Kim, 2024. "The impact of robots on labor demand: evidence from job vacancy data in South Korea," Empirical Economics, Springer, vol. 67(3), pages 1185-1209, September.
    9. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue nov.
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    Cited by:

    1. Yongheng Hu, 2025. "Heterogeneous Agents in the Data Economy," Papers 2509.09656, arXiv.org.

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    More about this item

    JEL classification:

    • 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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