Full Citation

Title: The Effects of Digitalization on Employment and Entrepreneurship

Citation Type: Miscellaneous

Publication Year: 2018

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Abstract: We investigate the impacts of the new wave of digitalization and artificial intelligence (AI) on individual transitions in the US labor market. Based on large representative panel data–the matched monthly Current Population Survey– we provide evidence that significant effects of AI are already observable at the individual level. In particular, a larger risk of digitalization of an individual’s current occupation is associated with a higher likelihood of switching occupations or becoming non-employed. We find that entry into unincorporated entrepreneurship is most likely at a medium level of digitalization risk, whereas there is no significant association between digitalization risk and entry into incorporated entrepreneurship. We also find significant gender differences in the effects of digitalization on transitions into different types of entrepreneurship.

Url: http://conference.iza.org/conference_files/MacroEcon_2018/sorgner_a21493.pdf

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Authors: Fossen, Frank, M; Sorgner, Alina

Publisher: University of Nevada

Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure, Other

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