AI Exposure Linked to Slower Worker Wage Growth
Economists analyze data suggesting artificial intelligence is suppressing wages for exposed workers before causing widespread job losses.
Economists are investigating whether artificial intelligence is suppressing worker wages as a precursor to widespread job losses. Data from the Bureau of Labor Statistics shows a deceleration in wage growth and the lowest labor share of nonfarm business output since 1947.
Apollo Global Management released a study indicating that workers in AI-exposed occupations experienced real-wage growth 6.7 percentage points slower after 2023 than those in less-exposed roles. This suggests companies may be capturing productivity gains through wage compression. The Federal Reserve Bank of Dallas added that workers with a low experience premium are particularly susceptible to this pressure.
Critics and other researchers offer a more nuanced view. Ben Zipperer of the Economic Policy Institute argues that small sample sizes and post-pandemic normalization in the tech sector may skew the data. MIT professors Daron Acemoglu and David Autor suggest AI may specifically pressure entry-level roles while creating new tasks or specialized expertise for others.
