AI's impact on wage inequality and skill premium
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School of Business |
Bachelor's thesis
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Date
2024
Department
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Mcode
Degree programme
Taloustiede
Language
en
Pages
25
Series
Abstract
In the past decade, AI technology has spread rapidly across companies in different sectors, and generative AI models such as ChatGPT have gained enormous popularity among the masses. However, the impact of AI on the labor market is non-trivial, as it differs from previous technological changes. In this paper, I will investigate how AI impacts wage inequality and skill premium, and how this affects different occupations. Based on recent literature, I conclude that the exposure to automation is distributed more equally across workers in comparison to pre-AI technologies. Research on the topic is only emerging and predictions of the outcomes still vary significantly. Nevertheless, AI can provide opportunities for lowskill workers, and this is the path institutions, policy makers and researchers should focus on.Description
Thesis advisor
Mendel, MoritzKeywords
AI, skill premium, wage inequality, wage gap