Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/314643 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17746
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This study examines the implications of artificial intelligence (AI) on employment, wages, and inequality in Latin America and the Caribbean (LAC). The paper identifies tasks and occupations most exposed to AI using comprehensive individual-level data alongside AI exposure indices. Unlike traditional automation, AI exposure correlates positively with higher education levels, ICT, and STEM skills. Notably, younger workers and women with high-level ICT and managerial skills face increased AI exposure, underscoring unique opportunities. A comparison of LAC with the OECD countries reveals greater impacts of AI in the former, with physical and customer-facing tasks showing divergent correlations to AI exposure. The findings indicate that while AI contributes to employment growth at the top and bottom of wage quintiles, its wage impact strongly depends on the movement of workers from the middle class to below the wage mean of the high-level quintile of wages, hence decreasing the average income of the top quintile.
Subjects: 
artificial intelligence
automation
labor market
developing economies
AI exposure
inequality
non cognitive skills
cognitive skills
JEL: 
J23
J24
J31
Document Type: 
Working Paper

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