Is a College Education Still Enough? The IT-Labor Relationship with Education Level, Task Routineness, and Artificial Intelligence

Abstract

This study investigates the relationship between information technology (IT) and human labor through the lens of education level, task routineness, and artificial intelligence (AI). It makes use of a comprehensive data set covering 60 U.S. industries from 1998 to 2013. The results show that a college degree may not be sufficient, especially in routine-intensive industries, where a graduate degree may be increasingly necessary to meet the demands of computerized work environments. They also suggest that continuous education and IT skill development are essential for workers to thrive in a technology-driven economy. Governments should continue to support higher education to meet the demands driven by IT implementation, particularly as advanced technologies like AI emerge. Long-term training programs should be established to equip less-educated workers with the necessary skills to navigate technological changes. Additionally, policy makers should be cautious about the potential impact of advanced IT, such as AI, on employment rates and consider the consequences of increasing minimum wage levels, as it may incentivize firms to invest more in automation. Overall, this study emphasizes the need for a comprehensive understanding of the IT-labor relationship, guiding decision making for individuals, firms, educators, and policy makers in adapting to the challenges and opportunities presented by advancing technology.