AI and the Future of Work in an Aging Economy

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The Wharton School::Wharton Pension Research Council::Wharton Pension Research Council Working Papers
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Economics
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aging
older workers
retirement
artificial intelligence
structural transformation
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2025
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Carlo Pizzinelli
Marina Mendes Tavares
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Abstract

We examine the potential disruptions and opportunities for older workers from Artificial Intelligence (AI). Older workers’ labor market experience is marked by lower fluidity across occupations, sectors, and jobs, suggesting ex ante limited capacity to adjust to AI-driven structural transformation. Yet, a larger share of older workers, compared to younger peers, is already employed in occupations expected to benefit from AI as a complementary technology. Conditional on acquiring the required skills, these workers could enjoy growing opportunities and higher wages. Some features of these jobs, such as the ability to telework, align with senior workers’ preferences and may incentivize greater employment at older ages.

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2025-07
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