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Unequal Impacts of AI on Colombia's Labor Market: An Analysis of AI Exposure, Wages, and Job Dynamics

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Listed:
  • Garcia-Suaza, Andrés
  • Sarango-Iturralde, Alexander
  • Caiza-Guamán, Pamela
  • Gil Díaz, Mateo
  • Acosta Castillo, Dana

Abstract

The rapid advancements in the domain of artificial intelligence (AI) have exerted a considerable influence on the labor market, thereby engendering alterations in the demand for specific skills and the structure of employment. This study aims to evaluate the extent of exposure to AI within the Colombian labor market and its relation with workforce characteristics and available job openings. To this end, we built a specific AI exposure index or Colombia based on skill demand in job posts. Our findings indicate that 33.8% of workers are highly exposed to AI, with variations observed depending on the measurement method employed. Furthermore, it is revealed a positive and significant correlation between AI exposure and wages, i.e., highly exposed to AI earn a wage premium of 21.8%. On the demand side, only 2.5% of job openings explicitly mention AI-related skills. These findings imply that international indices may underestimate the wage premium associated with AI exposure in Colombia and underscore the potential unequal effects on wages distribution among different demographic groups.

Suggested Citation

  • Garcia-Suaza, Andrés & Sarango-Iturralde, Alexander & Caiza-Guamán, Pamela & Gil Díaz, Mateo & Acosta Castillo, Dana, 2025. "Unequal Impacts of AI on Colombia's Labor Market: An Analysis of AI Exposure, Wages, and Job Dynamics," GLO Discussion Paper Series 1604, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1604
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    References listed on IDEAS

    as
    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.
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    3. David Mhlanga, 2021. "Artificial Intelligence in the Industry 4.0, and Its Impact on Poverty, Innovation, Infrastructure Development, and the Sustainable Development Goals: Lessons from Emerging Economies?," Sustainability, MDPI, vol. 13(11), pages 1-16, May.
    4. Andrew Green, 2024. "Artificial intelligence and the changing demand for skills in the labour market," OECD Artificial Intelligence Papers 14, OECD Publishing.
    5. Alekseeva, Liudmila & Azar, José & Giné, Mireia & Samila, Sampsa & Taska, Bledi, 2021. "The demand for AI skills in the labor market," Labour Economics, Elsevier, vol. 71(C).
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    More about this item

    Keywords

    Artificial intelligence; labor market; job posts; occupations; skills; Colombia;
    All these keywords.

    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
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • 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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