Still Waters, Rapid Currents: Early Labor Market Transformation under Generative AI

Anders Humlum and Emilie Vestergaard

No 33777, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the early labor market impacts of AI chatbots by linking large-scale adoption surveys to administrative labor market records in Denmark. We document rapid currents: most employers in exposed occupations have adopted chatbot initiatives, workers report productivity benefits, and new AI-related tasks are widespread. Yet these currents have not broken the surface: using difference-indifferences, we estimate precise null effects on earnings and recorded hours at both the worker and workplace levels, ruling out effects larger than 2% two years after the launch of ChatGPT. What moves is the structure of work: employers absorb AI through task reorganization—including new tasks in content generation, AI oversight, and AI integration—and adopters transition into higher-paying occupations where AI chatbots are more relevant, though still too few to move average earnings. Technological change reshapes work well before it surfaces in earnings or hours.

JEL-codes: J23 J24 J31 O33 (search for similar items in EconPapers)
Date: 2025-05
New Economics Papers: this item is included in nep-ain, nep-lma and nep-tid
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