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Artificial Intelligence and Employment: A Look into the Crystal Ball

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Listed:
  • Dario Guarascio
  • Jelena Reljic
  • Roman Stöllinger

Abstract

This paper provides evidence on the employment impact of artificial intelligence exposure in European regions. Building on occupation-based AI-exposure indicators mapped to the European occupational classification, the study analyses regional employment dynamics between 2011 and 2018. After controlling for a wide range of supply and demand factors, the results indicate that AI exposure has, on average, a positive impact on regional employment. European regions with a larger share of AI-exposed occupations display more favourable employment dynamics once potential endogeneity concerns are mitigated. The paper also finds evidence of a moderating effect of robot density on the AI-employment nexus, although this relationship lacks a causal underpinning.

Suggested Citation

  • Dario Guarascio & Jelena Reljic & Roman Stöllinger, 2023. "Artificial Intelligence and Employment: A Look into the Crystal Ball," CIMEO Working Paper Series 174, Centre for Investigation and Modelling of Experimental Observations (CIMEO).
    • Handle: RePEc:ter:wpaper:00174
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • 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
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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