Scandinavian Working Papers in Economics

Working Papers,
Örebro University, School of Business

No 2023:12: Artificial Intelligence, Tasks, Skills and Wages: Worker-Level Evidence from Germany

Erik Engberg (), Michael Koch (), Magnus Lodefalk () and Sarah Schroeder ()
Additional contact information
Erik Engberg: Örebro University School of Business, Postal: Örebro University, School of Business, SE - 701 82 ÖREBRO, Sweden
Michael Koch: Aarhus University, Postal: Fuglesangs Allé 4, 2632, 114, 8210 Aarhus V, Denmark
Magnus Lodefalk: Örebro University School of Business, Postal: Örebro University, School of Business, SE - 701 82 ÖREBRO, Sweden
Sarah Schroeder: Aarhus University, Postal: Fuglesangs Allé 4, 2632, 119, 8210 Aarhus V, Danmark

Abstract: This paper documents novel facts on within-occupation task and skill changes over the past two decades in Germany. In a second step, it reveals a distinct relationship between occupational work content and exposure to artificial intelligence (AI) and automation (robots). Workers in occupations with high AI exposure, perform different activities and face different skill requirements, compared to workers in occupations exposed to robots. In a third step, the study uses individual labour market biographies to investigate the impact on wages between 2010 and 2017. Results indicate a wage growth premium in occupations more exposed to AI, contrasting with a wage growth discount in occupations exposed to robots. Finally, the study further explores the dynamic influence of AI exposure on individual wages over time, uncovering positive associations with wages, with nuanced variations across occupational groups.

Keywords: Artificial intelligence technologies; Task content; Skills; Wages

JEL-codes: J23; J24; J44; N34; O33

Language: English

55 pages, December 27, 2023

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