The Future of Work: Inequality, Artificial Intelligence, and What Can Be Done About It. A Literature Review

TL;DR

This literature review examines how generative AI may transform work, highlighting uncertainties about job displacement, inequality, and policy responses amidst diverse expert opinions.

Contribution

It systematically maps key disagreements in current AI and labor economics literature, clarifying the landscape of debates on AI's impact on work and inequality.

Findings

AI may displace or reinstate jobs, depending on context

Effects on income inequality are uncertain and debated

Policy measures are needed to mitigate negative impacts

Abstract

Generative Artificial Intelligence constitutes a new wave of automation. There is broad agreement among economists that humanity is potentially entering into a period of profound change. However, significant uncertainties and disagreements exist concerning a variety of overlapping topics: the share of jobs in which human labour is displaced and/or reinstated through automation; the effects on income inequality; the effects on job satisfaction; and, finally, what policy changes ought to be pursued to reduce potential negative impacts. This literature review seeks to clarify this landscape by mapping out key disagreements between positions, and to identify the critical elements upon which such disagreements rest. By surveying the current literature, the effects of AI on the future of work will be clarified.