## Labor Market Exposure to AI: Cross-country Differences and Distributional Implications

_IMF Working Papers, October 4, 2023_

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**Canonical URL:** [Labor Market Exposure to AI: Cross-country Differences and Distributional Implications](https://www.imf.org/en/publications/wp/issues/2023/10/04/labor-market-exposure-to-ai-cross-country-differences-and-distributional-implications-539656)

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## Bibliographic details
- Authors: Carlo Pizzinelli, Marina Mendes Tavares, Mauro Cazzaniga, Longji Li
- Published: October 4, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400254802.001

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### Study overview and methodology
- Authors: Carlo Pizzinelli, Augustus J Panton, Marina Mendes Tavares, Mauro Cazzaniga, Longji Li
- Date: October 4, 2023
- Research focus: Examines the impact of Artificial Intelligence (AI) on labor markets in Advanced Economies (AEs) and Emerging Markets (EMs).
- Methodological contribution: Proposes an extension to a standard measure of AI exposure that accounts for AI's potential as either a complement or a substitute for labor; complementarity reflects lower risks of job displacement.
- Data: Worker-level microdata from 2 AEs (US and UK) and 4 EMs (Brazil, Colombia, India, and South Africa).

### Key findings — cross-country patterns
- Unadjusted AI exposure varies substantially across countries.
- Advanced Economies (AEs) face higher unadjusted exposure than Emerging Markets (EMs) due to a higher employment share in professional and managerial occupations.
- When accounting for potential complementarity, differences in exposure across countries are more muted.

### Key findings — within-country distributional patterns
- Women face greater occupational exposure to AI at both high and low complementarity.
- Highly educated workers face greater occupational exposure to AI at both high and low complementarity.
- Workers in the upper tail of the earnings distribution are more likely to be in occupations with high exposure but also high potential complementarity.

### Subject tags and keywords
- Subject: Artificial intelligence, Education, Employment, Labor, Labor markets, Technology
- Keywords: Artificial intelligence, educated worker, Emerging Markets, Employment, employment share, exposure to AI, impact of artificial intelligence, labor market exposure, Labor markets, Occupations

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- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2023/10/04/labor-market-exposure-to-ai-cross-country-differences-and-distributional-implications-539656_