Artificial intelligence and the skill premium

David E. Bloom, Klaus Prettner, Jamel Saadaoui and Mario Veruete

Papers from arXiv.org

Abstract: What will likely be the effect of the emergence of ChatGPT and other forms of artificial intelligence (AI) on the skill premium? To address this question, we develop a nested constant elasticity of substitution production function that distinguishes between industrial robots and AI. Industrial robots predominantly substitute for low-skill workers, whereas AI mainly helps to perform the tasks of high-skill workers. We show that AI reduces the skill premium as long as it is more substitutable for high-skill workers than low-skill workers are for high-skill workers.

Date: 2023-11
New Economics Papers: this item is included in nep-ain, nep-cmp, nep-inv and nep-tid
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http://arxiv.org/pdf/2311.09255 Latest version (application/pdf)

Related works:
Working Paper: Artificial Intelligence and the Skill Premium (2024)
Working Paper: Artificial Intelligence and the Skill Premium (2024)
Working Paper: Artificial intelligence and the skill premium (2023)
Working Paper: Artificial intelligence and the skill premium (2023)
Working Paper: Artificial intelligence and the skill premium (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2311.09255

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