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New Technologies and Jobs in Europe

Author

Listed:
  • Albanesi, Stefania

    (University of Pittsburgh)

  • Silva, António Dias da

    (European Central Bank)

  • Jimeno, Juan F.

    (Bank of Spain)

  • Lamo, Ana

    (European Central Bank)

  • Wabitsch, Alena

    (University of Oxford)

Abstract

We examine the link between labour market developments and new technologies such as artificial intelligence (AI) and software in 16 European countries over the period 2011- 2019. Using data for occupations at the 3-digit level in Europe, we find that on average employment shares have increased in occupations more exposed to AI. This is particularly the case for occupations with a relatively higher proportion of younger and skilled workers. This evidence is in line with the Skill Biased Technological Change theory. While there exists heterogeneity across countries, only very few countries show a decline in employment shares of occupations more exposed to AI-enabled automation. Country heterogeneity for this result seems to be linked to the pace of technology diffusion and education, but also to the level of product market regulation (competition) and employment protection laws. In contrast to the findings for employment, we find little evidence for a relationship between wages and potential exposures to new technologies.

Suggested Citation

  • Albanesi, Stefania & Silva, António Dias da & Jimeno, Juan F. & Lamo, Ana & Wabitsch, Alena, 2023. "New Technologies and Jobs in Europe," IZA Discussion Papers 16227, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16227
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    Cited by:

    1. Roberto Roson & Emanuela Ghignoni, 2023. "A Numerical Simulation of Educational Mismatch in the Italian Labor Market," Working Papers 2023: 15, Department of Economics, University of Venice "Ca' Foscari".
    2. José Ignacio Conde-Ruiz & Juan José Ganuza & Manu García & Carlos Victoria, 2024. "La Demanda de Educación Superior ante el Cambio Tecnológico y la Inteligencia Artificial," Studies on the Spanish Economy eee2024-09, FEDEA.
    3. Raphael Auer & David Köpfer & Josef Sveda, 2024. "The rise of generative AI: modelling exposure, substitution and inequality effects on the US labour market," BIS Working Papers 1207, Bank for International Settlements.

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    More about this item

    Keywords

    artificial intelligence; employment; skills; occupations;
    All these keywords.

    JEL classification:

    • 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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