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The Demand for AI Skills in the Labor Market

Author

Listed:
  • Azar, José
  • Alekseeva, Liudmila
  • Gine, Mireia
  • Samila, Sampsa
  • Taska, Bledi

Abstract

We document a dramatic increase in the demand for AI skills in online job postings over the period 2010-2019. The demand for AI skills is highest in IT occupations, followed by architecture/engineering, life/physical/social sciences, and management. The sectors with the highest demand for AI are information, professional services, and finance. At the firm level, higher demand for AI skills is associated in the cross-section with larger market capitalization, higher cash holdings, and higher investments in R\&D. We also document a large wage premium for job postings that require AI skills, as well as a wage premium for non-AI vacancies posted by firms with a high share of AI vacancies. Interestingly, managerial occupations have the highest wage premium for AI skills.

Suggested Citation

  • Azar, José & Alekseeva, Liudmila & Gine, Mireia & Samila, Sampsa & Taska, Bledi, 2020. "The Demand for AI Skills in the Labor Market," CEPR Discussion Papers 14320, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:14320
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    References listed on IDEAS

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    2. Lyu, Wenjing & Liu, Jin, 2021. "Soft skills, hard skills: What matters most? Evidence from job postings," Applied Energy, Elsevier, vol. 300(C).
    3. Ayoubi, Charles, 2020. "Machine learning in healthcare: Mirage or miracle for breaking the costs dead-lock?," Thesis Commons tc24d, Center for Open Science.
    4. Lyu, Wenjing & Liu, Jin, 2021. "Artificial Intelligence and emerging digital technologies in the energy sector," Applied Energy, Elsevier, vol. 303(C).
    5. Boot, Arnoud & Hoffmann, Peter & Laeven, Luc & Ratnovski, Lev, 2021. "Fintech: what’s old, what’s new?," Journal of Financial Stability, Elsevier, vol. 53(C).
    6. Seifried, Mareike, 2021. "Transitions from offline to online labor markets: The relationship between freelancers' prior offline and online work experience," ZEW Discussion Papers 21-101, ZEW - Leibniz Centre for European Economic Research.

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    Keywords

    Artificial intelligence; Machine learning; Wage premium; Technology diffusion;
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