Artificial Intelligence, Production, and Inequality

We propose a nested CES production function to analyze the effects of artificial intelligence (AI). We show how wages of low-skilled and high-skilled workers are affected by the deployment and increasing use of AI and derive a condition for which AI reduces the skill premium.
This video is based on the paper
Bloom, DE, Prettner, K, Saadaoui, J, Veruete, M (2023). Artificial intelligence and the skill premium. arXiv:2311.09255
For the wage effects of the use of industrial robots, please see: • Stagnant Wages and Robots

[@jiangchuanxu7113]

very nice work!

[@KlausPrettner]

Thank you!

[@marcosmetalmind]

Very nice!

[@KlausPrettner]

Thank you!

[@ecosutra2849]

Very nice explanation Sir! Did you use Matlab for simulation? I am also a research scholar in economic growth and a fan of your work

[@KlausPrettner]

Thank you very much! I am glad you like the video and my work. For the simulations and the graphs in this paper we used Mathematica. Usually, however, I am using Matlab for simulations.