AI‑Driven Simplification Equalizes Wages

Generative AI can produce a 'simplification' effect—reducing task complexity so that workers across skill levels can perform formerly specialized jobs. A calibrated, dynamic task‑based model finds this channel can both raise average wages substantially (paper reports ~21%) and compress the wage distribution by enabling broader competition for the same occupations. — If true, this reframes labor and education policy: instead of assuming AI will unambiguously destroy middle‑skill jobs, governments must consider that AI may raise mean wages and reduce inequality via task simplification, changing priorities for retraining, minimum‑wage policy, and taxation.