The Impact of Artificial Intelligence on Unemployment among Educated People with Disabilities: An Empirical Analysis

Abstract

The impact of artificial intelligence (AI) on unemployment is a subject of debate among researchers and policymakers. This study investigates how AI affects unemployment among educated people with disabilities in 33 countries from 2004 to 2021. Several conclusions have been reached. First, both static and dynamic panel data estimators show that AI reduces aggregate unemployment and unemployment among educated men with disabilities. In contrast, there is no significant impact on the unemployment of educated women with disabilities. Second, the panel smooth transition regression model provides compelling evidence for the existence of two regimes and a nonlinear impact of AI on unemployment among educated women with disabilities. The impact is not significant when AI is low (first regime), but the situation changes when AI exceeds a given threshold level (second regime). Therefore, educated women with disabilities may have more opportunities to integrate into the job market due to the increased adoption of AI. Countries are recommended to foster an employment-friendly environment that promotes inclusion and equitable opportunity for educated people with disabilities by developing and encouraging the adoption of AI technologies.