Cited by 405Labor market dynamics and wage inequalityDigital Economy and Work TransformationEthics and Social Impacts of AI

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Economics of Artificial Intelligence: Implications for the Future of Work

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Ernst, Ekkehardt, Merola, Rossana, Samaan, Daniel·2019·IZA Journal of Labor Policy

DOI 10.2478/izajolp-2019-0004

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Abstract

The current wave of technological change based on advancements in artificial intelligence (AI) has created widespread fear of job loss and further rises in inequality. This paper discusses the rationale for these fears, highlighting the specific nature of AI and comparing previous waves of automation and robotization with the current advancements made possible by a widespread adoption of AI. It argues that large opportunities in terms of increases in productivity can ensue, including for developing countries, given the vastly reduced costs of capital that some applications have demonstrated and the potential for productivity increases, especially among the low skilled. At the same time, risks in the form of further increases in inequality need to be addressed if the benefits from AI-based technological progress are to be broadly shared. For this, skills policies are necessary but not sufficient. In addition, new forms of regulating the digital economy are called for that prevent further rises in market concentration, ensure proper data protection and privacy, and help share the benefits of productivity growth through the combination of profit sharing, (digital) capital taxation, and a reduction in working time. The paper calls for a moderately optimistic outlook on the opportunities and risks from AI, provided that policymakers and social partners take the particular characteristics of these new technologies into account.

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Authors: Ernst, E., Merola, R., & Samaan, D.
Affiliations: Research Department, International Labour Organisation , Route des Morillons 4, 1211 Geneva , Switzerland
International Labour Organization (CH)
ORCID: Samaan, Daniel
Venue: IZA Journal of Labor Policy
Publisher: Walter de Gruyter GmbH
Published: 2019-06-01
Volume: 9
Issue: 1
ISSN: 2193-9004 (ISSN-L)
DOI: 10.2478/izajolp-2019-0004
OpenAlex: W2969615692
Cited by: 405
References: 77
Citations by year: 2026: 39 · 2025: 84 · 2024: 96 · 2023: 61 · 2022: 52 · 2021: 36 · 2020: 30 · 2019: 7
FWCI: 39.01
Type: journal article
Language: en
Open access: hybrid
doi.org
Licence: cc-by
creativecommons.org/licenses/by/4.0 (unspecified)
Locations: IZA Journal of Labor Policy (publishedVersion, cc-by)
RePEc: Research Papers in Economics (submittedVersion)
DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion)
Econstor (Econstor) (submittedVersion, cc-by)
Topics: Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
Social Sciences › Sociology and Political Science › Digital Economy and Work Transformation
Physical Sciences › Computer Science › Artificial Intelligence › Ethics and Social Impacts of AI
Keywords: artificial intelligence, future of work, job displacement, inequality, productivity growth, automation, robotization, low-skilled workers, skills policy, digital economy regulation, market concentration, data protection, profit sharing, working time reduction, developing countries, technological change

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Economics of Artificial Intelligence: Implications for the Future of Work

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