On the Impact of Artificial Intelligence on Employment: Empirical Evidence from Selected Countries
On the Impact of Artificial Intelligence on Employment: Empirical Evidence from Selected Countries

Author(s): Ahmet Koseoglu, Ali Gokhan Yucel
Subject(s): Accounting - Business Administration, Human Resources in Economy, ICT Information and Communications Technologies
Published by: Scientia Moralitas Research Institute
Keywords: Artificial Intelligence; employment; system GMM;
Summary/Abstract: This study investigates the impact of artificial intelligence (AI) on employment in a panel of selected countries. Using a dynamic framework, we employ the two-step System Generalized Method of Moments (System-GMM) estimator with Windmeijer correction to address endogeneity and account for the persistence of labor market dynamics. High-quality AI publications are used as a proxy to measure AI development. Employment is disaggregated by gender, skill level, and age groups to capture heterogeneous effects across the labor force. The empirical results indicate that AI adoption exerts differentiated effects on employment, with younger and low-skilled workers being more exposed to displacement risks, while high-skilled groups show signs of complementarity. These findings suggest that the labor market implications of AI are uneven and depend on demographic and skill characteristics. Policy implications emphasize the importance of targeted education, skill upgrading, and adaptive labor market policies to mitigate risks and harness the potential benefits of AI-driven technological change.

• Details
• Contents