AI Empowerment and Flexible Labor Supply: Evidence from an Online Delivery Platform

Organised by: RCE 2 (Emerging Technologies and Innovation)

Presentation Title: AI Empowerment and Flexible Labor Supply: Evidence from an Online Delivery Platform

Time and Date: 10:30 - 11:30 am, Thursday, 5^th December, 2024 (Beijing time)

Language: English

Onsite location: BS542

Abstract:

We examine how AI technology advancement affects labor market dynamics in an online delivery platform, focusing on market competition and flexible labor supply. While existing research emphasizes AI's direct productivity effects, we analyze its broader impact on competitive dynamics and labor supply decisions. Using rider-level data from 2019-2023, we develop and estimate a structural model of market-level demand-supply and individual labor participation that incorporates worker heterogeneity and market dynamics. We find that Al improvements have an equalizing effect by reducing productivity gaps and disproportionately benefiting less-skilled workers through two mechanisms: reduced returns to worker skill and lower barriers to participation. This leads to higher retention of less-skilled workers and increased exit of top performers, shifting market composition towards more low-skilled workers. Our findings demonstrate how AI's labor market impact depends critically on worker heterogeneity and market competition, with important implications for workforce development and platform designs, particularly in the gig economy.

Presenter: Prof. Xianghua Lu, Fudan University

 Prof. Xianghua Lu is a professor of Management Information Systems at the School of management, Fudan University, Shanghai. She received her PhD degree from Fudan University, China. She received the National Science Fund for Distinguished Young Scholars and Wujiapei Prize of China Information Economics Society. Her research interests include Human AI collaborations, Online community, E-commerce and IT management. Her research work has been published in leading academic journals such as Management Science, MIS Quarterly, Journal of Marketing, Marketing Science, Information System Research, Production and Operations Management et al. She has received 6 NSFC grants as PI and over 10 provincial/ministerial/industry research funds. She has provided research advisory service to multiple internet and technology companies.

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