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

Author

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  • Musina, Sofiya

    (Warwick University)

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.

Suggested Citation

  • Musina, Sofiya, 2024. "The Effect of Generative AI Adoption on Knowledge Workers : Evidence from Luxembourg," Warwick-Monash Economics Student Papers 75, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:75
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/wmesp/manage/75_-_musina.pdf
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    More about this item

    Keywords

    Employment ; Skills Demand ; Technology ; AI JEL classifications: J01 ; J23 ; J24 ; O33;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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