Theoretical Impact of AI on Working Hours and Wage Rate

Abstract

This chapter assesses the correlation between AI expansion and its influence on diverse economic factors like labor supply, wage rates, and working hours. In the subsequent segment, the authors explore the connection between the utility function and the derived hours equation. Unlike the direct utility indicators of leisure and consumption, indirect utility functions are represented through income/wage rates or prices. These models and diagrams are developed by the authors to illustrate the correlation between income/consumption and its association with the balance between working hours and leisure hours. This chapter encompasses diverse models predicated on specific assumptions, contingent on market demand and supply scenarios.