Artificial intelligence and wage inequality
This paper looks at the links between AI and wage inequality across 19 OECD countries.
It uses a measure of occupational exposure to AI derived from that developed by Felten,
Raj and Seamans (2019) – a measure of the degree to which occupations rely on abilities
in which AI has made the most progress.
The results provide no indication that AI has affected wage inequality between occupations
so far (over the period 2014-2018). At the same time, there is some evidence that
AI may be associated with lower wage inequality within occupations – consistent with
emerging findings from the literature that AI reduces productivity differentials between
workers.
Further research is needed to identify the exact mechanisms driving the negative relationship
between AI and wage inequality within occupations. One possible explanation is that
low performers have more to gain from using AI because AI systems are trained to embody
the more accurate practices of high performers. It is also possible that AI reduces
performance differences within an occupation through a selection effect, e.g. if low
performers leave their job because they are unable to adapt to AI tools by shifting
their activities to tasks that AI cannot automate.
Available from April 10, 2024
In series:OECD Artificial Intelligence Papersview more titles