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Technology replaces traditional jobs and creates new lines of work.
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A new study of U.S. employment led by MIT labor economist David Autor sheds light on how technology replaces jobs and creates new ones.
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In the postwar United States, new forms of work benefited college graduates under 30 more than any other group.
David Autor, labor economist
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"We had never before seen exactly who is doing new work. It’s done more by young and educated people, in urban settings."
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Innovation-based new work is driven by demand.
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Government-backed expansion of research and manufacturing in the 1940s, in response to World War II, accounted for a large amount of new work and new forms of expertise.
David Autor, labor economist
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"This says that wherever we make new investments, we end up getting new specializations. If you create a large-scale activity, there’s always going to be an opportunity for new specialized knowledge that’s relevant for it. We thought that was exciting to see."
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The paper "What Makes New Work Different from More Work?" is forthcoming in the Annual Review of Economics.
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The paper’s authors are David Autor; Caroline Chin; Anna M. Salomons; and Bryan Seegmiller.
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Caroline Chin is a doctoral student in MIT’s Department of Economics.
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Anna M. Salomons is a professor at Tilburg University’s Department of Economics and Utrecht University’s School of Economics.
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Bryan Seegmiller is an assistant professor at Northwestern University’s Kellogg School of Management.
David Autor, labor economist
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"People are really worried that AI-based automation is going to erode specific tasks more rapidly. Eroding tasks is not the same thing as eroding jobs, since many jobs involve a lot of tasks."
David Autor, labor economist
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"If everyone is an expert, then no one is an expert."
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A 2024 study by the same four co-authors found that about six out of ten jobs in the United States from 1940 to 2018 were in new specialties that had broadly developed since 1940.
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The new study extends prior research by looking more precisely at who fills new lines of work.
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The researchers used U.S. Census Bureau data from 1940 to 1950 and American Community Survey data from 2011 to 2023.
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Census Bureau records become public after about 70 years, allowing examination of individual-level data from the 1940 and 1950 censuses.
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The researchers could track the same workers as they changed jobs between the 1940 and 1950 censuses.
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Through a collaborative research arrangement with the U.S. Census Bureau, the authors gained secure access to person-level American Community Survey records.
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These data allowed analysis of earnings, education, and other demographics of workers in new occupational specialties and comparison with workers in longstanding specialties.
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New work is tied to new forms of expertise.
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Expertise in new work is initially scarce but may become more common over time.
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Expertise is often linked to new forms of technology.
David Autor, labor economist
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"It requires mastering some capability. What makes labor valuable is not simply the ability to do stuff, but specialized knowledge. And that often differentiates high-paid work from low-paid work."
David Autor, labor economist
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"The scarcity value erodes. It becomes common knowledge."
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In 1950, about 7 percent of employees had jobs in types of work that had emerged since 1930.
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From 2011 to 2023, about 18 percent of workers were in lines of work introduced since 1970.
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New work emerged more often in urban areas, with people under 30 benefiting more than other age groups.
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People employed in new work in 1940 were 2.5 times as likely as the general population to be in new work in 1950.
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College graduates were 2.9 percentage points more likely than high school graduates to be engaged in new work.
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New work has, on aggregate, higher salaries than existing forms of work.
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The wage premium for new work fades over time as expertise becomes more widespread.
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Driving a car was once a scarce form of expertise.
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