AI, Automation and New Jobs

Abstract

Our study analyzes the advantages that automation presents for the job. The main new feature of our framework is that, in addition to the part of jobs that are displaced by automation, it also leads to the creation of new, more complex versions of existing tasks, which leads to the demand for employment. We focused more on the essential factor which is the degree of skill to take advantage of these new jobs. We carry out research based on information relating to automation and jobs. Also, by using the output of the final good model, we show that the creation of new tasks in which the labor has a comparative advantage is one of the positive aspects of automation. We find that automation will create new jobs (smart jobs) and eliminates repetitive jobs which will be replaced by machines in the future. However, these new jobs will need high skills. Therefore, the level and quality of education will play important role in the new jobs that automation will generate. Workers and future students must prepare themselves by focusing their training more on the skills that new technologies will require. Automation may prepare us for a future in which workers with low skills will be forced to change occupations or lose their occupations, which will be completely occupied by machines. We find also that the job loss depends on the speed of automation in each country. Based on the economic structure, the investment policy in new technology, and the level of education of countries, the speed at which automation spread is slower in some countries and intense in others. Therefore, the job is more at risk in countries with high automation than in those with medium or low automation.