Artificial intelligence and machine learning will significantly transform low-skilled jobs that have not yet been negatively affected by past technological change.
We compare market designs for access regulation of a bottleneck transmission line, and study their impact on investment decisions by an incumbent firm with an existing dirty technology and entrant with an uncertain future low-carbon technology.
From 2002 up to 2009, the economies of European Union countries went through a skill upgrading, rather than a polarisation between low-skill and high-skill jobs. After 2009, this changed, with declining real wages and a significant increase in the share of workers in low-skill jobs. This assessment evaluates these changes in connection with labour market variables, population densities and the emergence of machine learning and artificial intelligence.
Artificial intelligence can help fight the coronavirus through applications including population screening, notifications of when to seek medical help and tracking how infection spreads. The COVID-19 outbreak has triggered intense work on such applications, but it will take time before results become visible.
In this blog post, I review the main explanations for this paradox and I briefly discuss relevant policy options in order to increase the contribution of AI on productivity