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Artificial intelligence, demand switching and sectoral wage gap

By: Roy, Shreya and Chaudhuri, Bibek Ray.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 61(9), Feb 28, 2026: p.32-36. In: Economic & Political WeeklySummary: A finite-change general equilibrium framework models AI as a technological shock transmitted through price adjustments, showing that preference shifts towards AI services can widen wage gaps. Empirical validation using an endogenous structural break approach identifies 2007 as the year of AI’s introduction in India, coinciding with the emergence of services such as Windows Live and ride-hailing apps like Ola and Uber. It has been observed that wage inequality has not worsened significantly, owing to the slow adoption of AI-based services such as ride-hailing, used by less than 0.7% of the population.-Reproduced https://www.epw.in/journal/2026/9/insight/artificial-intelligence-demand-switching-and.html
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Articles Articles Indian Institute of Public Administration
61(9), Feb 28, 2026: p.32-36 Available AR138681

A finite-change general equilibrium framework models AI as a technological shock transmitted through price adjustments, showing that preference shifts towards AI services can widen wage gaps. Empirical validation using an endogenous structural break approach identifies 2007 as the year of AI’s introduction in India, coinciding with the emergence of services such as Windows Live and ride-hailing apps like Ola and Uber. It has been observed that wage inequality has not worsened significantly, owing to the slow adoption of AI-based services such as ride-hailing, used by less than 0.7% of the population.-Reproduced


https://www.epw.in/journal/2026/9/insight/artificial-intelligence-demand-switching-and.html

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