abstract:
This paper studies the relationship between exposure to artificial intelligence (AI) and workers’ wages across European countries. Overall, a positive relationship between exposure to AI and workers’ wages is found, however it differs considerably between workers and countries. High-skilled workers experience far higher wage premiums related to AI-related skills than middle- and low-skilled workers. Positive associations are concentrated among occupations moderately and highly exposed to AI (between the 6th and 9th decile of the exposure), and are weaker among the least exposed occupations. Returns of AI-related skills among high-skilled workers are even higher in Eastern European Countries compared to Western European countries. The heterogeneity likely originates from the difference in overall labour costs between country groups. The results presented in this study were obtained from the estimation of Mincerian wage regressions on the 2018 release of the EU Structure of Earning Survey.
keywords:
artificial intelligence, wages, technological change, Europe
publication year:
2024
language:
english
Publications category:
labour market
publishing series:
IBS Working Paper
publication number:
05/2024
ISSN:
2451-4373
Additional information:
I would like to thank Iga Magda and Jakub Sokołowski for their insightful comments. This research was funded in whole or in part by National Science Centre, Poland, project no. 2021/41/N/HS4/03640. For the purpose of Open Access, the author has applied a CC-BY public copyright licence to any Author Accepted Manuscript (AAM) version arising from this submission. This paper uses Eurostat data. The usual disclaimers apply. All errors are mine.
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