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Jan Stuhler discussion of: AI & EU Jobs

Jan Leonard Stuhler · Economic Policy · 1 Jan 2025

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Abstract

The article ‘New Technologies and Jobs in Europe’ provides a detailed exploration of the potential labour market impacts of Artificial Intelligence (AI) and related technologies across European countries. Drawing on comprehensive data from the EU Labour Force Survey, the study uses proxies for AI and software exposure at the sector-occupation level to examine their effects on employment shares and wages. This analysis is grounded in a task-based model of production and wage determination that allows for occupation-specific bargaining power and negotiation costs. The key finding is a positive correlation between AI exposure and employment growth, particularly in occupations with a higher prevalence of young and highly skilled workers. Perhaps surprisingly, this increase in employment does not coincide with higher wage growth. While there is much discussion about the potential labour market effects of AI adoption, this debate often centres around speculative forecasts that rely on strong theoretical assumptions and little empirical evidence. An important advantage of this new study by Stefania Albanesi, António Dias da Silva, Juan F. Jimeno, Ana Lamo and Alena Wabitsch is that it uses actual data to assess the relationship between technology exposure and labour market outcomes, providing factual evidence to a debate where it remains limited. Other advantages are the systematic comparison of different measures of AI exposure proposed by Felten et al. (2019) and Webb (2020), and the detailed consideration of country-specific structural factors, such as employment protection legislation and product market regulation.

About this publication

Leading field journal. A leading journal in economics or a neighbouring field (on the Tinbergen Institute’s A list or near the top of the RePEc ranking), or a top-rated computer-science venue.

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Published
2025 (22 months ago)
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