The Relationship Between Artificial Intelligence and Well-being: Evidence from 343 Metropolitan Areas

34 Pages Posted: 2 Oct 2020

See all articles by Christos Makridis

Christos Makridis

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Saurabh Mishra

Stanford University, Human-centered AI Institute

Date Written: August 17, 2020

Abstract

While artificial intelligence (AI) jobs as a share of total job postings have increased from 0.2% to nearly 1% between 2010 to 2019, their expansion varies significantly across space. Using new data on the incidence of these postings by city, combined with data on subjective well-being and economic activity, we document three new facts. First, cities with greater increases in the share of AI job postings between 2014 and 2018 exhibit greater economic growth. Second, the relationship between AI growth and economic growth is mediated by the initial industrial structure and human capital of cities' capabilities for conducting AI research and development. Third, increases in the AI share of jobs are associated with increases in subjective well-being, but they are mediated through economic growth. These results are consistent with models of structural transformation where technological change leads to improvements in well-being through improvements in economic activity.

Keywords: artificial intelligence, economic growth, industrial composition, subjective well-being, social welfare, structural change

JEL Classification: E24, J23, O47, L86

Suggested Citation

Makridis, Christos and Mishra, Saurabh, The Relationship Between Artificial Intelligence and Well-being: Evidence from 343 Metropolitan Areas (August 17, 2020). Available at SSRN: https://ssrn.com/abstract=3669348 or http://dx.doi.org/10.2139/ssrn.3669348

Christos Makridis (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

100 Main Street
E62-416
Cambridge, MA 02142
United States

Saurabh Mishra

Stanford University, Human-centered AI Institute ( email )

Stanford, CA 94305
United States

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