Title page

Contents

Abstract 3

1. Introduction 4

2. AI and the skill premium: theoretical considerations 6

3. AI and the skill premium: numerical illustration 8

3.1. Varying industrial robot use and the use of AI 10

4. Conclusions 14

References 14

Table 1. Summary of parameter values and initial levels for the simulation 9

Table 2. Skill premium for various levels of AI (Gt) 9

Figure 1. High-skill wages (Ws) for various levels of AI and industrial robots 11

Figure 2. Low-skill wages (Wu) for various levels of AI and industrial robots 12

Figure 3. Skill premium (Ws/Wu) for various levels of AI and industrial robots 13