"Many people worry that AI is going to take their job. But a recent survey conducted by the Federal Reserve Bank of New York found that rather than laying off workers, many AI-adopting firms are retraining their workforces to use the new technology. Yet there's little research into whether existing job-training programs are helping workers successfully adapt to an evolving labor market."
"Across the board, the training programs demonstrated a positive impact, with displaced workers seeing increased earnings after entering a new occupation. Still, those earnings were less for someone who targeted a high AI-exposed occupation than someone who targeted a low AI-exposed occupation. In this edited conversation, Ni explains the role that job-training programs play as AI use is transforming the labor market."
Researchers analyzed worker outcomes after participation in Workforce Innovation and Opportunity Act job-training programs using administrative earnings records from quarters before and after training. They measured transitions into occupations classified by AI exposure, defined as the extent of tasks that could be automated through traditional computerization or generative AI. Training programs produced positive impacts overall, with displaced workers experiencing higher earnings after entering new occupations. Earnings gains were smaller for workers who moved into highly AI-exposed occupations compared with those who entered low AI-exposed occupations. The findings suggest targeted retraining can aid displaced workers, but occupation-level automation risk affects payoff magnitude.
Read at Harvard Gazette
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