Labor Market Effects of AI Innovation
Using the text of US patents from 2003–2022, I categorize AI inventions into automation and augmentation margins, estimate occupational exposure with O*NET data, and identify causal effects on commuting-zone employment and wages in a shift-share design. Augmentation exposure raises employment 5–10 years after a patent is granted; automation shows suggestive wage declines — with effects that differ sharply by the skill level of exposed occupations.
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