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Artificial Intelligence Has Not Impacted Youth Labor Market Outcomes in Finland

Author

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  • Kauhanen, Antti
  • Rouvinen, Petri

Abstract

While research by Brynjolfsson et al. (2025) suggests that youth employment in the United States has declined significantly in occupations highly exposed to artificial intelligence, the position of older workers has remained stable. A new working paper by Kauhanen and Rouvinen (2026) replicates this analysis in the Finnish context, leveraging exceptionally comprehensive national income register data. In contrast to the US experience, Finland shows no evidence of AI-driven displacement among young workers, nor has exposure negatively impacted wage growth. A modest decline in youth employment is attributed to demographic shifts and aging-induced impacts rather than AI exposure. This divergence between the US and Finland stems from structural and institutional resilience: the Nordic labor market model and robust employment protection legislation help buffer technological shocks. Regarding policy, the memorandum emphasizes the need for pedagogical reform, advocating for an educational focus on higher-order critical thinking and AI integration from the very beginning of professional studies.

Suggested Citation

  • Kauhanen, Antti & Rouvinen, Petri, 2026. "Artificial Intelligence Has Not Impacted Youth Labor Market Outcomes in Finland," ETLA Brief 173, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:briefs:173
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    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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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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