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Economics of ChatGPT: A Labor Market View on the Occupational Impact of Artificial Intelligence

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  • Zarifhonarvar, Ali

Abstract

This study examines how ChatGPT affects the labor market. I first thoroughly analyzed the prior research that has been done on the subject in order to start understanding how ChatGPT and other AI-related services are influencing the labor market. Using the supply and demand model, I then assess ChatGPT's impact. This paper examines this innovation's short- and long-term effects on the labor market, concentrating on its challenges and opportunities. Furthermore, I employ a text-mining approach to extract various tasks from the International Standard Occupation Classification to present a comprehensive list of occupations most sensitive to ChatGPT.

Suggested Citation

  • Zarifhonarvar, Ali, 2023. "Economics of ChatGPT: A Labor Market View on the Occupational Impact of Artificial Intelligence," EconStor Preprints 268826, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:268826
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    References listed on IDEAS

    as
    1. Jacopo Staccioli & Maria Enrica Virgillito, 2021. "Back to the past: the historical roots of labor-saving automation," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 27-57, March.
    2. Genz, Sabrina & Gregory, Terry & Janser, Markus & Lehmer, Florian & Matthes, Britta, 2021. "How do workers adjust when firms adopt new technologies?," ZEW Discussion Papers 21-073, ZEW - Leibniz Centre for European Economic Research.
    3. Ali Zarifhonarvar, 2023. "A Survey on the Impact of Covid-19 on the Labor Market," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 9(1), pages 1-10, 03-2023.
    4. Benjamin Moll & Lukasz Rachel & Pascual Restrepo, 2022. "Uneven Growth: Automation's Impact on Income and Wealth Inequality," Econometrica, Econometric Society, vol. 90(6), pages 2645-2683, November.
    5. Sean Cao & Wei Jiang & Junbo L. Wang & Baozhong Yang, 2021. "From Man vs. Machine to Man + Machine: The Art and AI of Stock Analyses," NBER Working Papers 28800, National Bureau of Economic Research, Inc.
    6. Daron Acemoglu & David Autor & Jonathon Hazell & Pascual Restrepo, 2020. "AI and Jobs: Evidence from Online Vacancies," NBER Working Papers 28257, National Bureau of Economic Research, Inc.
    7. David Autor, 2022. "The Labor Market Impacts of Technological Change: From Unbridled Enthusiasm to Qualified Optimism to Vast Uncertainty," NBER Working Papers 30074, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Roman Rakowski & Petra Kowaliková, 2024. "The political and social contradictions of the human and online environment in the context of artificial intelligence applications," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    2. Samir Huseynov, 2023. "ChatGPT and the Labor Market: Unraveling the Effect of AI Discussions on Students' Earnings Expectations," Papers 2305.11900, arXiv.org, revised Aug 2023.
    3. Nilufar U. Babakhanova & Aijan B. Dzhumanova & Marija A. Troyanskaya & Stanislav Benčič & Yelena S. Petrenko, 2024. "SAP-LAP Model of Change Management for the Sustainable Employment of the Population in the Conditions of Dissemination of AI," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(1), pages 91-109, September.
    4. Albert Weichselbraun & Norman Süsstrunk & Roger Waldvogel & André Glatzl & Adrian M. P. Braşoveanu & Arno Scharl, 2024. "Anticipating Job Market Demands—A Deep Learning Approach to Determining the Future Readiness of Professional Skills," Future Internet, MDPI, vol. 16(5), pages 1-19, April.
    5. Wei, Xinyi & Chu, Xiaoyuan & Geng, Jingyu & Wang, Yuhui & Wang, Pengcheng & Wang, HongXia & Wang, Caiyu & Lei, Li, 2024. "Societal impacts of chatbot and mitigation strategies for negative impacts: A large-scale qualitative survey of ChatGPT users," Technology in Society, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    Large Language Models; Artificial Intelligence; Automation; Labor Saving Technology; ChatGPT; Labor Market; Generative AI; Occupational Classification;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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