IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2503.19159.html
   My bibliography  Save this paper

Augmenting or Automating Labor? The Effect of AI Development on New Work, Employment, and Wages

Author

Listed:
  • David Marguerit

Abstract

Artificial intelligence (AI) is reshaping the labor market by changing the task content of occupations. This study investigates the impact of AI development on the emergence of new work, employment, and wages in the United States from 2015 to 2022. I develop innovative methods to measure occupational and industry exposure to AI technologies that substitute labor (automation AI ) or enhance workers' output (augmentation AI), and to identify new work (i.e., new job titles). To address endogeneity, I use instrumental variable estimators, leveraging AI development in countries with limited economic ties to the United States. The findings indicate that automation AI negatively impacts new work, employment, and wages in low-skilled occupations, while augmentation AI fosters the emergence of new work and raises wages for high-skilled occupations. These results suggest that AI may contribute to rising wage inequality.

Suggested Citation

  • David Marguerit, 2025. "Augmenting or Automating Labor? The Effect of AI Development on New Work, Employment, and Wages," Papers 2503.19159, arXiv.org.
  • Handle: RePEc:arx:papers:2503.19159
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2503.19159
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2503.19159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.