IMF Working Papers

The Labor Market Impact of Artificial Intelligence: Evidence from US Regions

September 13, 2024

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Format: Chicago

"The Labor Market Impact of Artificial Intelligence: Evidence from US Regions", IMF Working Papers 2024, 199 (2024), accessed December 21, 2024, https://doi.org/10.5089/9798400288555.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper empirically investigates the impact of Artificial Intelligence (AI) on employment. Exploiting variation in AI adoption across US commuting zones using a shift-share approach, I find that during 2010-2021, commuting zones with higher AI adoption have experienced a stronger decline in the employment-to-population ratio. Moreover, this negative employment effect is primarily borne by the manufacturing and lowskill services sectors, middle-skill workers, non-STEM occupations, and individuals at the two ends of the age distribution. The adverse impact is also more pronounced on men than women.

Subject: Artificial intelligence, Employment, Employment rate, Labor, Labor markets, Population and demographics, Technology

Keywords: Artificial intelligence, Employment, Employment effect, Employment rate, Global, Impact of artificial intelligence, Labor, Labor market impact, Labor markets, Local labor markets, Low-skill services sectors, Middle-skill worker, Shift share, Technology

Publication Details

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