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Artificial Intelligence, Tasks, Skills and Wages: Worker-Level Evidence from Germany

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Abstract

This paper documents novel facts on within-occupation task and skill changes over the past two decades in Germany. In a second step, it reveals a distinct relationship between occupational work content and exposure to artificial intelligence (AI) and automation (robots). Workers in occupations with high AI exposure, perform different activities and face different skill requirements, compared to workers in occupations exposed to robots. In a third step, the study uses individual labour market biographies to investigate the impact on wages between 2010 and 2017. Results indicate a wage growth premium in occupations more exposed to AI, contrasting with a wage growth discount in occupations exposed to robots. Finally, the study further explores the dynamic influence of AI exposure on individual wages over time, uncovering positive associations with wages, with nuanced variations across occupational groups.

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  • Engberg, Erik & Koch, Michael & Lodefalk, Magnus & Schroeder, Sarah, 2023. "Artificial Intelligence, Tasks, Skills and Wages: Worker-Level Evidence from Germany," Working Papers 2023:12, Örebro University, School of Business.
    • Handle: RePEc:hhs:oruesi:2023_012
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    1. David Card & Jörg Heining & Patrick Kline, 2013. "Workplace Heterogeneity and the Rise of West German Wage Inequality," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(3), pages 967-1015.
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    More about this item

    Keywords

    Artificial intelligence technologies; Task content; Skills; Wages;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • 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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