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

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  • Yueling Huang

Abstract

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.

Suggested Citation

  • Yueling Huang, 2024. "The Labor Market Impact of Artificial Intelligence: Evidence from US Regions," IMF Working Papers 2024/199, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2024/199
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    Keywords

    Artificial intelligence; technology; labor; local labor markets; shift share; middle-skill worker; labor market impact; impact of artificial intelligence; employment effect; low-skill services sectors; Employment; Employment rate; Labor markets; Global;
    All these keywords.

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