The Effect of Generative AI Adoption on Knowledge Workers: Evidence from Luxembourg

Sofiya Musina
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Sofiya Musina: Warwick University

Warwick-Monash Economics Student Papers from Warwick Monash Economics Student Papers

Abstract: Large Language Models (LLMs), such as ChatGPT, demonstrate an unprecedented applicability in a variety of domains, and, unlike previous waves of innovation, are capable of nonroutine cognitive tasks - leaving educated, white-collar workers most exposed. However, few studies address the relevant labour market implications outside controlled experimental environments. This project investigates the effects of LLMs on knowledge worker competency requirements using a difference-in-difference model based on a sample of 105,912 online job advertisements (Luxembourg, 2020-2024). The findings contain weak evidence that LLMs cause a reduction in demand for experience, education, cognitive skills and creativity, while leaving soft skills unaffected.

Keywords: Employment; Skills Demand; Technology; AI JEL classifications: J01; J23; J24; O33 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ain, nep-lab and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:wrkesp:75

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