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    • Abbreviated Title: J. Econ. Bus. Manag.
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    • DOI: 10.18178/JOEBM
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HOME > Archive > 2026 > Volume 14 Number 2 (2026) >
JOEBM 2026 Vol.14(2): 133-136
DOI: 10.18178/joebm.2026.14.2.923

The Heterogeneous Effects of Artificial Intelligence on Labor Market Outcomes by Skill Level

Hengbin Zhang
Hengbin Zhang
Pasadena City College, Pasadena, California, United States, 91106
Email: hengbinzhang8@gmail.com

Manuscript received March 15, 2026; accepted June 15, 2026; published June 22, 2026.

Abstract—Artificial intelligence (AI) is one of the most powerful technological advancements that determines the contemporary labor markets. Its quick spreading to industries has brought about significant issues concerning the change in employment opportunities, wages, and job structures. This paper examines the non-homogeneous impacts of AI on the labor market, including the variations among low-, medium-, and high-skilled workers. This paper utilizes a qualitative method of analysis based on recent empirical research, institutional reports, and theoretical frameworks. It discusses the impact of AI on labor markets in terms of automation of tasks, productivity, and restructuring of occupations. The results suggest that AI does not affect all workers in the same way. Routine jobs will be more prone to job displacement and wage pressure as a result of the automation of routine jobs among low-skilled workers. The medium-skilled workers experience job polarization and reduced demand in conventional jobs. High-skilled employees, in their turn, tend to be positively affected by AI in terms of productivity and new jobs, but their jobs are also evolving. The research paper concludes that AI is transforming instead of eradicating work, but its disproportionate impact threatens to increase inequality. Policies to address this need need to be effective, such as reforms in education and reskilling, so that the technological advancements can only work to the advantage of a larger group of the workforce.

Keywords—artificial intelligence, labor market, automation, skill levels, inequality

Cite: Hengbin Zhang, "The Heterogeneous Effects of Artificial Intelligence on Labor Market Outcomes by Skill Level," Journal of Economics, Business and Management, vol. 14, no. 2, pp. 133-136, 2026.

Copyright © 2026 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).


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