Rapid technological progress poses challenges for labor markets. Automation can both displace and create jobs. Currently, an unprecedented digitalization of our economy is underway. Artificial intelligence [AI] has become a reality and machines are able to learn how to outperform humans in some cognitive tasks. This ongoing technological transformation of work can interact with the [Coronavirus Disease 2019] COVID-19 pandemic shock resulting in fewer jobs for the less educated and low-skilled workers as well as further decline in the labor share of national income. This paper reviews the... [+] Show more
Rapid technological progress poses challenges for labor markets. Automation can both displace and create jobs. Currently, an unprecedented digitalization of our economy is underway. Artificial intelligence [AI] has become a reality and machines are able to learn how to outperform humans in some cognitive tasks. This ongoing technological transformation of work can interact with the [Coronavirus Disease 2019] COVID-19 pandemic shock resulting in fewer jobs for the less educated and low-skilled workers as well as further decline in the labor share of national income. This paper reviews the impact of automation and artificial intelligence on work and discusses the long-run effects of the pandemic crisis on the workforce.
The author first examines the impact of computer technologies and robots in the last three decades, then presents the main theories that deal with the impact of technology on employment as well as some relevant empirical evidence with an emphasis on Europe. This is followed by a description of AI and [machine learning] ML and discussion of their implications for the workforce. The author then reviews what is known so far about the impact of the COVID-19 pandemic on labor markets and evaluates how it will affect the ongoing digitalization of the economy with an emphasis on labor outcomes. The final section provides some concluding remarks about the available policy options in addressing the concerns over the new technologies and the pandemic.
Edited excerpts from publication and publisher's website.
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