The Effect of Artificial Intelligence (AI) on Firm Labor Structure

dc.contributor.author Xue, Mei
dc.contributor.author Cao, Xing
dc.contributor.author Feng, Xu
dc.contributor.author Gu, Bin
dc.contributor.author Zhang, Yongjie
dc.date.accessioned 2021-12-24T18:24:44Z
dc.date.available 2021-12-24T18:24:44Z
dc.date.issued 2022-01-04
dc.description.abstract This paper aims to study the effect of AI on firm labor structure. Using a unique panel data of over 1300 publicly listed companies in China from 2007 to 2018, we study the effect of AI on firms’ labor composition measured by labor force’s education levels. We further compare the effect of AI on firms in the manufacturing sector to the effect on firms in the service sector. Our analysis generates two major findings. First, the use of AI leads to a larger labor demand increase for jobs requiring lower education levels than those requiring higher education levels. Second, the effect is stronger in the service sector than in the manufacturing sector. These findings contradict predictions of the “skill-biased technological change” (SJTB) and U-shaped “job polarization” effects proposed in the prior literature. We propose that “technology-enabled deskilling” effect is driving the effect of AI on labor structure.
dc.format.extent 10 pages
dc.identifier.doi 10.24251/HICSS.2022.853
dc.identifier.isbn 978-0-9981331-5-7
dc.identifier.uri http://hdl.handle.net/10125/80194
dc.language.iso eng
dc.relation.ispartof Proceedings of the 55th Hawaii International Conference on System Sciences
dc.rights Attribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.uri https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject Strategy, Information, Technology, Economics, and Society (SITES)
dc.subject artificial intelligence
dc.subject labor structure
dc.subject technology-enabled deskilling
dc.title The Effect of Artificial Intelligence (AI) on Firm Labor Structure
dc.type.dcmi text
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