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The relationship between Artificial Intelligence (AI) exposure and returns to education Cover

The relationship between Artificial Intelligence (AI) exposure and returns to education

By:   
Open Access
|Dec 2024

Figures & Tables

Figure 1.

Exposure to AI by age groups and education level

Source: authors’ elaboration based on EU SES, EORA, E. Felten et al. (2021) data

Figure 2.

Exposure to AI by log wage percentile

Source: authors’ elaboration based on EU SES, EORA, E. Felten et al. (2021) data

Figure 3.

Correlation between change in log wage between 2010–2018 and AI exposure, in Eastern and Western European countries

Source: authors’ elaboration based on EU SES, EORA, E. Felten et al. (2021) data

Table 1.

The relationship between AI exposure, skill level (education), and workers’ wages, standardised

(1)(2)(3)(4)(5)(6)
AI Exposure (std.)0.028*** (0.003)0.063*** (0.003)0.025*** (0.002)0.084*** (0.004)0.122*** (0.003)0.017*** (0.003)
AI Exposure 2 (std.)0.010*** (0.002)−0.001 (0.002)0.027*** (0.001)0.046*** (0.003)0.043*** (0.003)0.027*** (0.002)
AI Exposure (std.) X Secondary Education dummy−0.039*** (0.002)−0.050*** (0.002)−0.009*** (0.002)
AI Exposure (std.) X Tertiary Education dummy−0.080*** (0.003)−0.080*** (0.003)0.036*** (0.002)
AI Exposure 2 (std.) X Secondary Education dummy−0.022*** (0.002)−0.038*** (0.002)−0.015*** (0.001)
AI Exposure 2 (std.) X Tertiary Education dummy−0.043*** (0.003)−0.048*** (0.003)−0.001 (0.002)
Secondary Education dummy−0.065*** (0.002)−0.041*** (0.001)0.072*** (0.001)−0.069*** (0.003)−0.034*** (0.002)0.085*** (0.002)
Tertiary Education dummy0.131*** (0.002)0.165*** (0.002)0.226*** (0.002)0.170*** (0.003)0.200*** (0.003)0.205*** (0.002)
Occupation FE.YesYesYesYesYesYes
Sector FE.NoYesYesNoYesYes
Country FE.NoNoYesNoNoYes
No. of Observations7.9 M7.9 M7.9 M7.9 M7.9 M7.9 M

Note: Standard errors in parentheses.

*** p<0.01,

** p<0.05,

* p<0.1

Source: authors’ elaboration based on EU SES, EORA, E. Felten et al. (2021) data.

Figure 4.

The estimated relationship between AI exposure and workers’ wages in primary, secondary, and tertiary educated groups

Source: authors’ elaboration based on EU SES, EORA, E. Felten et al. (2021) data

Figure 5.

Estimated returns to education by deciles of AI exposure

Note: Primary education is the base category. For presentation purposes, the distance between AI exposure deciles is equal

Source: authors’ elaboration based on EU SES, EORA, E. Felten et al. (2021) data

Table 2.

The relationship between AI exposure, skill level (education), and workers’ wages in Western and Eastern European country groups, standardised

Panel A: Western European(1)(2)(3)(4)(5)(6)
AI Exposure (std.)0.067*** (0.006)0.066*** (0.005)0.043*** (0.004)0.136*** (0.007)0.130*** (0.005)0.048*** (0.005)
AI Exposure 2 (std.)0.010*** (0.003)0.051*** (0.003)0.037*** (0.002)0.067*** (0.004)0.103*** (0.003)0.044*** (0.003)
AI Exposure (std.) X Secondary Education dummy−0.079*** (0.003)−0.068*** (0.002)−0.016*** (0.002)
AI Exposure (std.) X Tertiary Education dummy−0.034*** (0.004)−0.050*** (0.003)0.017*** (0.002)
AI Exposure 2 (std.) X Secondary Education dummy−0.060*** (0.003)−0.052*** (0.003)−0.016*** (0.002)
AI Exposure 2 (std.) X Tertiary Education dummy−0.086*** (0.004)−0.072*** (0.003)−0.012*** (0.002)
Secondary Education dummy0.250*** (0.002)0.223*** (0.002)0.107*** (0.001)0.273*** (0.003)0.243*** (0.003)0.117*** (0.002)
Tertiary Education dummy0.385*** (0.003)0.359*** (0.002)0.244*** (0.002)0.419*** (0.004)0.395*** (0.004)0.236*** (0.003)
Occupation FE.YesYesYesYesYesYes
Sector FE.NoYesYesNoYesYes
Country FE.NoNoYesNoNoYes
No. of Observations3.3 M3.3 M3.3 M3.3 M3.3 M3.3 M
Panel B: Eastern European(1)(2)(3)(4)(5)(6)
AI Exposure (std.)0.038*** (0.003)0.036*** (0.003)0.009*** (0.003)0.034*** (0.005)0.028*** (0.005)−0.010** (0.005)
AI Exposure 2 (std.)0.017*** (0.002)0.009*** (0.002)0.018*** (0.002)−0.009*** (0.003)−0.014*** (0.003)0.002 (0.003)
AI Exposure (std.) X Secondary Education dummy−0.012*** (0.004)−0.011** (0.004)−0.005 (0.004)
AI Exposure (std.) X Tertiary Education dummy0.011** (0.005)0.027*** (0.005)0.056*** (0.005)
AI Exposure 2 (std.) X Secondary Education dummy0.017*** (0.003)0.012*** (0.003)0.000 (0.003)
AI Exposure 2 (std.) X Tertiary Education dummy0.037*** (0.004)0.028*** (0.004)0.013*** (0.003)
Secondary Education dummy−0.012*** (0.002)0.004** (0.002)0.051*** (0.002)−0.039*** (0.003)−0.015*** (0.003)0.051*** (0.003)
Tertiary Education dummy0.126*** (0.003)0.138*** (0.003)0.229*** (0.002)0.070*** (0.004)0.088*** (0.004)0.190*** (0.003)
Occupation FEYesYesYesYesYesYes
Sector FE.NoYesYesNoYesYes
Country FE.NoNoYesNoNoYes
No. of Observations4.7 M4.7 M4.7 M4.7 M4.7 M4.7 M

Note: Standard errors in parentheses.

*** p<0.01,

** p<0.05,

* p<0.1

Source: authors’ elaboration based on EU SES, EORA, E. Felten et al. (2021) data.

Figure 6.

The estimated relationship between AI exposure and workers’ wages for the primary, secondary, and tertiary educated, in Eastern and Western European countries

Source: authors’ elaboration based on EU SES, EORA, E. Felten et al. (2021) data

Figure 7.

Estimated returns to education by deciles of AI exposure in Eastern and Western European countries

Source: authors’ elaboration based on EU SES, EORA, E. Felten et al. (2021) data.

DOI: https://doi.org/10.2478/ceej-2024-0029 | Journal eISSN: 2543-6821 | Journal ISSN: 2544-9001
Language: English
Published on: Dec 31, 2024
Published by: Faculty of Economic Sciences, University of Warsaw
In partnership with: Paradigm Publishing Services
JEL:

© 2024 Karol Madoń, published by Faculty of Economic Sciences, University of Warsaw
This work is licensed under the Creative Commons Attribution 4.0 License.