PhD defence Pelin Ozgul Persyn

Keywords: Artificial intelligence, Labour markets, Future of work, Worker productivity

"AI at Work: How AI Reshapes Work and Workers’ Labour Market Outcomes"

This thesis examines how Artificial Intelligence (AI) reshapes labour markets across workers, firms, and future labour market entrants. As AI capabilities advance at a rapid speed; questions arise about which workers will be most affected, whether AI will complement or substitute human labour, and how societies should prepare for these transformations. This thesis investigates how AI influences employment outcomes, wage growth, task allocation, and worker productivity. 

Drawing on German employment data, the thesis finds that highly skilled workers in analytical, non-routine occupations are among the most exposed to AI, but finds no evidence that greater exposure is associated with adverse employment conditions. Firm-level evidence from manufacturing and customer service shows that AI can both substitute and complement workers: in a factory setting, AI adoption unfolds gradually and is associated with a decline in operator tasks, while in a call center, AI-supported training improves worker performance and productivity, particularly among less experienced employees. Finally, while information about AI-related job risks increases students’ anxiety about future employment, this does not translate into support for traditional social policies. Together, the findings highlight that AI’s labour market implications are not technologically predetermined but depend critically on how AI systems are designed, deployed, and governed within organizational and institutional contexts.

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