Migration och företagens internationalisering – en kunskapsöversikt

Working Paper No. 386 The Effects of Artificial Intelligence on Jobs: Evidence from an AI subsidy Program

Working paperPublication

Mark Hellsten, Shantanu Khanna, Magnus Lodefalk, Yaroslav Yakymovych

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Publication year

2025

Published in

Ratio Working Paper Series.

Abstract

Artificial intelligence (AI) is expected to reshape labor markets, yet causal evidence remains scarce. We exploit a novel Swedish subsidy program that encouraged small and mid-sized firms to adopt AI. Using a synthetic difference-in-differences design comparing awarded and non-awarded firms, we find that AI subsidies led to a sustained increase in job postings over five years, but with no statistically detectable change in employment. This pattern reflects hiring signals concentrated in AI occupations and white-collar roles. Our findings align with task-based models of automation, in which AI adoption reconfigures work and spurs demand for new skills, but hiring frictions and the need for complementary investments delay workforce expansion.

Artificial Intelligence for Public Use

Working paperPublication

Lodefalk, M.; Engberg, E.; Lidskog, R.; Tang, A.

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Publication year

2025

Published in

Örebro University School of Business Working Paper

Abstract

This paper investigates the economic and societal impacts of Artificial Intelligence (AI) in the public sector, focusing on its potential to enhance productivity and mitigate labour shortages. Employing detailed administrative data and novel occupational exposure measures, we simulate future scenarios over a 20-year horizon, using Sweden as an illustrative case. Our findings indicate that advances in AI development and uptake could significantly alleviate projected labour shortages and enhance productivity. However, outcomes vary substantially across sectors and organisational types, driven by differing workforce compositions. Complementing the economic analysis, we identify key challenges that hinder AI’s effective deployment, including technical limitations, organisational barriers, regulatory ambiguity, and ethical risks such as algorithmic bias and lack of transparency. Drawing from an interdisciplinary conceptual framework, we argue that AI’s integration in the public sector must address these socio-technical and institutional factors comprehensively. To unlock AI’s full potential, substantial investments in technological infrastructure, human capital development, regulatory clarity, and robust governance mechanisms are essential. Our study thus contributes both novel economic evidence and an integrated societal perspective, informing strategies for sustainable and equitable public-sector digitalisation.

Artificial Intelligence and Worker Stress Evidence from Germany

Article (with peer review)Publication

Koch, M., & Lodefalk, M.

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Publication year

2025

Published in

Digital Society, 4(1), 5

Abstract

We use individual survey data providing detailed information on stress, technology adoption, and work, worker, and employer characteristics, in combination with recent measures of AI and robot exposure, to investigate how new technologies affect worker stress. We find a persistent negative relationship, suggesting that AI and robots could reduce the stress level of workers in Germany. We furthermore provide evidence on potential mechanisms to explain our findings. Overall, the paper contributes to the economic literature by providing suggestive evidence of modern technologies changing the way we perform our work in a way that reduces stress and work pressure.

Abstract

Abstract

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