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AI Has Not Impacted the Youth Labor Market in Finland

Author

Listed:
  • Kauhanen, Antti
  • Rouvinen, Petri

Abstract

We examine the impact of generative AI on the youth labor market in Finland by replicating the key analyses of Brynjolfsson et al. (2025) with comprehensive population-level data. Contrary to the US findings, we find no systematic displacement effects linked to AI exposure among youth in Finland. Employment trends reflect demographic shifts rather than AI-driven changes, with early career groups showing modest declines and senior workers experiencing growth. Wage trajectories show no persistent differences across AI exposure levels. These results suggest that Finland’s labor market is resilient to immediate AI-induced disruptions in entry-level roles, likely because of structural and policy factors.

Suggested Citation

  • Kauhanen, Antti & Rouvinen, Petri, 2026. "AI Has Not Impacted the Youth Labor Market in Finland," ETLA Working Papers 135, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:wpaper:135
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    References listed on IDEAS

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    1. Liu, Yan & Wang, He & Yu, Shu, 2025. "Labor Demand in the Age of Generative AI : Early Evidence from the U.S. Job Posting Data," Policy Research Working Paper Series 11263, The World Bank.
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    Keywords

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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
    • 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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