%0 Report
        %A Hellsten, Mark
%A Khanna, Shantanu
%A Lodefalk, Magnus
%A Yakymovych, Yaroslav
        %T The Effects of Artificial Intelligence on Jobs: Evidence from an AI Subsidy Program
        %D 2025
        %8 2025 Nov
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 18267
        %U https://www.iza.org/publications/dp18267
        %X Artificial intelligence (AI) is expected to reshape labor markets, yet causal evidence remains scarce. We exploit a novel Swedish subsidy program that encouraged small and mid-sized firms to adopt AI. Using a synthetic difference-in-differences design comparing awarded and non-awarded firms, we find that AI subsidies led to a sustained increase in job postings over five years, but with no statistically detectable change in employment. This pattern reflects hiring signals concentrated in AI occupations and white-collar roles. Our findings align with task-based models of automation, in which AI adoption reconfigures work and spurs demand for new skills, but hiring frictions and the need for complementary investments delay workforce expansion.
        %K hiring
%K labor markets
%K Artificial Intelligence
%K task content
%K technological change