Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331666 
Year of Publication: 
2025
Series/Report no.: 
GLO Discussion Paper No. 1692
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
Artificial intelligence (AI) is expected to reshape labor markets, yet causal evidence remains scarce. We exploit a novel Swedish subsidy program that encouraged small and mid-sized firms to adopt AI. Using a synthetic difference-in-differences design comparing awarded and non-awarded firms, we find that AI subsidies led to a sustained increase in job postings over five years, but with no statistically detectable change in employment. This pattern reflects hiring signals concentrated in AI occupations and white-collar roles. Our findings align with task-based models of automation, in which AI adoption reconfigures work and spurs demand for new skills, but hiring frictions and the need for complementary investments delay workforce expansion.
Subjects: 
Artificial intelligence
Labor markets
Hiring
Task content
Technological change
JEL: 
J23
J24
O33
Document Type: 
Working Paper

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