--- title: "The Impact of Artificial Intelligence and Automation on Labor Markets: The Role of Organizations in Advanced and Developing Economies · AI Fault Line" url: https://aifaultline.com/research/p/doi-10-5281-zenodo-20698861/ description: "AI Fault Line is a neutral, evidence-cited field guide to why experts looking at the same developments disagree about AI's effect on productivity, jobs, inequality, regulation and the pace of change." --- [Research](https://aifaultline.com/research/) # The Impact of Artificial Intelligence and Automation on Labor Markets: The Role of Organizations in Advanced and Developing Economies Ubeydullah ŞENER · Zenodo (CERN European Organization for Nuclear Research) · 2 Jun 2026 [Read original source](https://doi.org/10.5281/zenodo.20698861) Open access Where this sits in the debate - [Will AI destroy more jobs than it creates?](https://aifaultline.com/debate/jobs/) - [Will AI widen inequality?](https://aifaultline.com/debate/inequality/) · its finding supports the claim ([why studies differ](https://aifaultline.com/debate/inequality/#why)) Direction of the finding as read from the abstract by an AI model ([AI-written](https://aifaultline.com/about/)). ## Key takeaway [AI-written](https://aifaultline.com/about/) A fixed-effects panel study of 13 developed and developing countries over 2005-2024 finding that AI and automation increased wage inequality, with industrial robotization raising inequality more in advanced economies. Institutional quality significantly moderated the effect, so inequality outcomes depend on institutions as well as technology. ## Abstract This study discusses the role of institutional factors in the effects of artificial intelligence and automation on labor marketinequalities. A panel data set covering the period 2005–2024 was used, comprising 7 developed countries (South Korea,Japan, Germany, the United States, France, Italy, and Spain) and 6 developing countries (China, Turkey, Poland, Hungary,Mexico and Brazil). The findings indicate that technological transformation and the spread of artificial intelligence andautomation have increased wage inequality in the labor market, though this effect varies across countries. The empiricalstrategy, tested using fixed-effects panel regression and interaction models, examines three main hypotheses: (H1) AI andautomation increase wage inequality; (H2) This effect is more pronounced in developed countries; (H3) Institutional qualitysignificantly moderates this relationship.The interaction model (β₃ = 0.89, p < 0.001) showed that institutional quality significantly mitigated the effects oftechnological transformation on inequality. Industrial robotization has significantly increased inequality in advancedeconomies. In contrast, this effect was less pronounced in developing economies. The results suggest that inequality isshaped not only by technological progress but also by institutional factors. ## About this publication **Preprint.** A preprint — posted publicly before or without journal peer review; findings may still be revised. Published 2026 (5 months ago) Citations 0 (OpenAlex) 0 citations recorded by OpenAlex — too few 2026 papers in this collection for a fair comparison. [Chart: published 2026] ## More on this topic Related by theme, not necessarily by method or conclusion. - [The Effects of Generative AI on High Skilled Work: Evidence from Three Field Experiments with Software Developers](https://aifaultline.com/research/p/doi-10-2139-ssrn-4945566/) SSRN · 2024 - [GPTs are GPTs: An Early Look at the Labor Market Impact Potential of Large Language Models](https://aifaultline.com/research/p/doi-10-48550-arxiv-2303-10130/) arXiv · 2023 - [Experimental evidence on the productivity effects of generative artificial intelligence](https://aifaultline.com/research/p/doi-10-1126-science-adh2586/) Science · 2023 - [The simple macroeconomics of AI](https://aifaultline.com/research/p/doi-10-1093-epolic-eiae042/) Economic Policy · 2024 Overview assembled automatically from collected metadata. [How this site is built](https://aifaultline.com/about/).