Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324295 
Year of Publication: 
2025
Series/Report no.: 
IZA Policy Paper No. 216
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This article offers a comprehensive review of Artificial Intelligence's (AI) effects on global labour markets, with a particular focus on developing economies. Drawing on an extensive body of evidence, it demonstrates that AI's disruptive potential diverges markedly from earlier waves of automation, extending its reach into occupations once deemed insulated-especially those demanding advanced education and complex cognitive abilities. The analysis reveals significant heterogeneity in AI exposure across countries at different development stages and among workers distinguished by skill sets, educational attainment, age, and gender, underscoring its unequal distributional consequences. To harness AI's benefits while safeguarding vulnerable groups, we propose four strategic policy levers: bolstering digital infrastructure, expanding vocational training and lifelong upskilling programmes, formalising labour markets, and integrating AI tools within social protection delivery. Collectively, these measures foster a human centred adoption of AI, bridge the digital divide, and promote inclusive growth, thereby mitigating adverse impacts on employment and wages.
Subjects: 
artificial intelligence
labour market
inequality
automation
social protection
JEL: 
J23
J24
J31
O1
O33
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.