Towards a Shared Prosperity

Technology, Inequality and Labor Market · APVV-23-0090

Research / Projects

About the project

The future of work is a source of controversy. New technologies, advances in automation and digitalization, and the use of AI have the potential to outcompete humans in a wide range of tasks. Evidence so far suggests that massive investments in new technologies have led to long-run productivity gains, yet the gains are so unequally distributed that many workers are left behind, experiencing job insecurity and stagnating wages. Similar pressures from robotics and digitalization had a different impact on local labor markets across developed countries, as institutional differences played a major role in shaping the distribution of benefits.

The project provides new empirical evidence on the effects of different technologies on employment and wage inequality, displacement of workers, and creation of new work, and explores the role of institutions, strategies, and policies in shifting these trends toward an inclusive society and shared prosperity.

  • Principal investigatorMartin Lábaj
  • Project IDAPVV-23-0090
  • DurationJuly 1, 2024 – June 30, 2027
  • RecipientBratislava University of Economics and Business
  • FundingSlovak Research and Development Agency (APVV), General Call 2023

Work packages

WP1

Automation and Wage Inequality

Do employment and inequality effects depend on interactions between labor market institutions, economic factors, and technologies? How does task displacement shape wage structures and labor market polarization in Europe?

WP2

Technology, Productivity and New Work

Can automation explain the growing wedge between labor productivity and wages in European countries? Which technologies complement workers and create new work, and which policies can bring productivity and wages in line again?

WP3

Inclusive Society and Shared Prosperity

How does automation affect vulnerable groups, with a focus on gender, education, and ethnicity? Semi-structured interviews with key policy stakeholders and social partners map their views on the impact of automation.

WP4

Policy Recommendations and Dissemination

Translating findings from WP1–WP3 into policy recommendations and disseminating them to policymakers and stakeholders through policy briefs, the project web page, conference sessions, and public events.

Team

  • Martin LábajPrincipal investigator
  • Tomáš OlešBratislava University of Economics and Business
  • Erika MajzlíkováBratislava University of Economics and Business
  • Gabriel ProcházkaBratislava University of Economics and Business
  • Lucia KováčováBratislava University of Economics and Business
  • Katarína VaľkováBratislava University of Economics and Business
  • Matej VitálošBratislava University of Economics and Business
  • Francesco RonconeBratislava University of Economics and Business
  • Flavio MalnatiBratislava University of Economics and Business
  • Klaus PrettnerVienna University of Economics and Business
  • Jelena ReljicSapienza University of Rome

Former members: Paulína Borovská, Tomáš Ševček.

Outputs

Research papers (D.1)

Journal article | 2026 | WP2, WP3

In-Demand Skills: A Shield Against Automation — Evidence from Online Job Vacancies

Tomáš Oleš

Published in Journal for Labour Market Research, 60, Article 5 (2026)

Journal article | 2025 | WP1

Impact of Robots and Artificial Intelligence on Labor and Skill Demand: Evidence from the UK

Martin Lábaj, Tomáš Oleš, Gabriel Procházka

Published in Eurasian Business Review, 15(4), 953–1001 (2025)

New measures of occupational exposure to industrial robots and artificial intelligence, based on the semantic similarity of job task descriptions and technology descriptions, are used to analyze changes in labor and skill demand in the United Kingdom over the past decade. Robot exposure is positively associated with increased demand for skilled workers, while AI exposure is weakly associated with a decline in demand for skilled workers.

Journal article | 2025 | WP1, WP4

AI and the Labour Market: Opening the Black Box

N. Greenan, Dario Guarascio, Jelena Reljic

Published in Eurasian Business Review, 15, 925–951 (2025)

The impact of AI on employment is neither predetermined nor uniform: it is shaped by the implementation context, organizational choices, and institutional frameworks, with heterogeneity across countries, sectors, firms, and demographic groups calling for adaptive policy responses.

Working paper | 2025 | WP3

The Impact of Automation on the Position of Vulnerable Groups in the Labour Market in Slovakia and Czechia: Conceptual Framework

WP31
Lucia Kováčová, Michaela Grinaj

Building on the intersectional framework of vulnerability, the paper provides a conceptual and analytical framework for understanding how automation affects different population subgroups in Slovakia and Czechia, and serves as the basis for semi-structured interviews with stakeholders.

Working paper | 2025 | WP3

The Impact of Robots on Workplace Injuries and Deaths: Empirical Evidence from Europe

WP30
M. De Simone, Dario Guarascio, Jelena Reljic

Using an instrumental variable approach for EU manufacturing sectors over 2011–2019, the paper finds that robot adoption reduces both workplace injuries and deaths. The safety benefits materialize only in high-tech sectors and in countries where industrial relations provide strong worker protection.

Working paper | 2024 | WP2

Climate Change and Automation: The Emission Effects of Robot Adoption

WP28
Anna Abeliansky, Klaus Prettner, Ernesto Rodríguez-Crespo

A model of production in the age of automation with emission externalities predicts that robot use raises emissions on average, that the effect weakens as robots become more efficient, and that robots can reduce emissions where electricity comes mainly from renewable sources. The empirical analysis supports these predictions.

Infrastructure and data (D.2, D.3)

D.2 | WP1

Enhanced microdata research center — SecureData Lab

The research data center at the Department of Economic Policy was completed and extended in 2025 (internal drives, cooling, authentication tokens). Three primary computers are in operation, providing approximately 100 TFLOPS with 128 GB RAM, 80 TFLOPS with 64 GB RAM, and 30 TFLOPS with 32 GB RAM — a stable technical base for big data, numerical optimization, and local language models.

D.3 | WP2

New indicators of exposure to technologies

Occupational exposure to robotics, software and artificial intelligence, built from the cosine similarity between patent texts and occupational task descriptions and aggregated at the occupation level, for the ISCO-08 and UK SOC 2010 classifications.

Policy briefs and dissemination (D.6)

Conference sessions and events (D.8)

Event | July 2, 2026 | Bratislava

Summer Roundtable 2026: Technology, Labor Markets, and Shared Prosperity

Summer roundtable on automation, AI, and the future of work in Europe. Wednesday, July 2, 2026, 9:00 a.m.–1:30 p.m., Department of Economic Policy (room 4B.26), Faculty of Economics and Finance, Bratislava University of Economics and Business.

  • 9:30 a.m. · Martin Lábaj — Robots and the Wedge between Wages and Productivity: A European Analysis
  • 10:00 a.m. · Klaus Prettner (WU Vienna) — AI Innovation and the Labor Share in European Regions
  • 11:00 a.m. · Francesco Roncone — New Technologies and the US Labor Market
  • 11:30 a.m. · Tomáš Oleš — Expertise Divergence between Europe and the US
  • 1:00 p.m. · Project meeting and closing remarks — review of the ProWageAut project outcomes (led by Klaus Prettner)
Event | December 16, 2025 | Bratislava

KHP Roundtable 2025

  • Martin Lábaj — Job Skills and New Technology: How Can We Address the Remaining Puzzles?
  • Francesco Roncone — Gender-biased technological change and the polarization of the female labor market
  • Gabriel Procházka — What Are Parliaments in the EU Talking About?
Special session | September 23–24, 2025 | Vienna

“Labor Markets and Automation” at CORA 2025 — Conference on Robots and Automation

  • Zsófia Bárány (Central European University) — Aggregate Labor Share and Firm Level Automation
  • Klaus Prettner — Stagnant Wages in the Face of Rising Labor Productivity: The Role of Automation Technologies
  • Ekaterina Prytkova (Université Côte d’Azur) — The Employment Impact of Emerging Digital Technologies
  • Martin Lábaj, Jelena Reljic — New Technology and Job Skills in Europe: Digital Divide or Convergence?
Special session | September 11–12, 2025 | Nitra

“AI and Labor Markets” at the Slovak Economic Association Meeting (SEAM 2025)

  • Dávid Hojdan — invited speaker
  • Tomáš Oleš, Francesco Roncone — AI Inventions and Task Changes Within Occupations: New Work for Whom?
  • Lucia Kováčová, Michaela Grinaj — The impact of automation on position of vulnerable groups in the labour market in Slovakia and Czechia
  • Martin Lábaj, Jelena Reljic, Lucia Širochmanová — New Technology, Job Skills, and Shifts in the Labor Demand in Europe: Digital Divide or Convergence?
Event | December 13, 2024 | Bratislava

KHP Roundtable 2024

  • Tomáš Oleš — In-Demand Skills: A Shield Against Automation - Evidence from Online Job Vacancies
  • Klaus Prettner — Climate Change and Automation: the Emission Effects of Robot Adoption

Plans for 2026

  • Revision and publication of “Impact of Automation and Augmentation Technologies on Employment in Europe” (Lábaj – Oleš).
  • Working papers on “Job Skills and New Technology” and “Income Inequality and Digital Skills Intensity of Jobs in Europe”.
  • Meetings with stakeholders from the public and private sectors and semi-structured interviews (WP3).
  • Presentation of project results at international conferences.

This project has received funding from the Slovak Research and Development Agency (APVV) under the General Call 2023, Grant Agreement APVV-23-0090.