Template-Type: ReDIF-Paper 1.0
Author-Name: Giulio Cornelli
Author-X-Name-First: Giulio
Author-X-Name-Last: Cornelli
Author-Name: Jon Frost
Author-X-Name-First: Jon
Author-X-Name-Last: Frost
Author-Name: Saurabh Mishra
Author-X-Name-First: Saurabh
Author-X-Name-Last: Mishra
Title: Artificial intelligence, services globalisation and income inequality
Abstract: How does economic activity related to artificial intelligence (AI) impact the income of various groups in an economy? This study, using a panel of 86 countries over 2010–19, finds that investment in AI is associated with higher income inequality. In particular, AI investment is tied to higher real incomes and income shares for households in the top decile, while households in the fifth and bottom decile see a decline in their income shares. We also find a positive association with exports of modern services linked to AI. In labour markets, there is a contraction in overall employment, a shift from mid-skill to high-skill managerial roles and a reduced labour share of income.
Creation-Date: 2023-10
File-URL: https://www.bis.org/publ/work1135.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1135.htm
File-Format: text/html
Number: 1135
Keywords: artificial intelligence, automation, services, structural shifts, inequality
Classification-JEL: D31, D63, O32
Handle: RePEc:bis:biswps:1135