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The demand for AI skills in the labor market

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  • Alekseeva, Liudmila
  • Azar, José
  • Giné, Mireia
  • Samila, Sampsa
  • Taska, Bledi

Abstract

Using detailed data on skill requirements in online vacancies, we estimate the demand for AI specialists across occupations, sectors, and firms. We document a dramatic increase in the demand for AI skills over 2010–2019 in the U.S. economy across most industries and occupations. The demand is highest in IT occupations, followed by architecture and engineering, scientific, and management occupations. Firms with larger market capitalization, higher cash holdings, and higher investments in R&D have a higher demand for AI skills. We also document a wage premium of 11% for job postings that require AI skills within the same firm and 5% within the same job title. Managerial occupations have the highest wage premium for AI skills. Firms demanding AI skills more intensively also offer higher salaries in non-AI jobs.

Suggested Citation

  • Alekseeva, Liudmila & Azar, José & Giné, Mireia & Samila, Sampsa & Taska, Bledi, 2021. "The demand for AI skills in the labor market," Labour Economics, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:labeco:v:71:y:2021:i:c:s0927537121000373
    DOI: 10.1016/j.labeco.2021.102002
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    6. Charles Hoffreumon & Chris CM Forman & Nicolas van Zeebroeck, 2023. "Make or Buy your Artificial Intelligence? Complementarities in Technology Sourcing," Working Papers TIMES² 2023-69, ULB -- Universite Libre de Bruxelles.
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    9. A. A. Ternikov, 2023. "Artificial intelligence and the demand for skills in Russia," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 11.
    10. Schultheiss, Tobias & Pfister, Curdin & Gnehm, Ann-Sophie & Backes-Gellner, Uschi, 2023. "Education expansion and high-skill job opportunities for workers: Does a rising tide lift all boats?," Labour Economics, Elsevier, vol. 82(C).
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