Artificial intelligence and unemployment in high-tech developed countries: New insights from dynamic panel data model


Guliyev H.

Research in Globalization, vol.7, 2023 (Scopus) identifier

  • Publication Type: Article / Article
  • Volume: 7
  • Publication Date: 2023
  • Doi Number: 10.1016/j.resglo.2023.100140
  • Journal Name: Research in Globalization
  • Journal Indexes: Scopus
  • Keywords: Artificial intelligence, Dynamic panel data, Unemployment
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

This study examines the effect of artificial intelligence on unemployment in high-tech developed countries. While artificial intelligence is more discussed in futuristic aspects, comprehensive empirical studies are limited in the literature. Therefore, this study uses the dataset, which includes 24 high-tech developed countries from 2005 to 2021 and examines the relationship between a country's Google Trend Index related to AI and the unemployment rate. In the empirical approach, we control the dynamic effect of unemployment by using dynamic panel data and GMM-system estimation to determine the effect of AI on unemployment. The main results show that artificial intelligence decreases the level of unemployment, and the ‘displacement effect’ of AI is validated.