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Artificial intelligence capital and employment prospects

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  • Nick Drydakis

Abstract

There is limited research assessing how AI knowledge affects employment prospects. The present study defines the term ‘AI capital’ as a vector of knowledge, skills, and capabilities related to AI technologies, which could boost individuals’ productivity, employment, and earnings. Subsequently, the study reports the outcomes of a genuine correspondence test in England. It was found that university graduates with AI capital, obtained through an AI business module, experienced more invitations for job interviews than graduates without AI capital. Moreover, graduates with AI capital were invited to interviews for jobs that offered higher wages than those without AI capital. Furthermore, it was found that large firms exhibited a preference for job applicants with AI capital, resulting in increased interview invitations and opportunities for higher-paying positions. The outcomes hold for both men and women. The study concludes that AI capital might be rewarded in terms of employment prospects, especially in large firms.

Suggested Citation

  • Nick Drydakis, 2024. "Artificial intelligence capital and employment prospects," Oxford Economic Papers, Oxford University Press, vol. 76(4), pages 901-919.
    • Handle: RePEc:oup:oxecpp:v:76:y:2024:i:4:p:901-919.
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    File URL: http://hdl.handle.net/10.1093/oep/gpae005
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    Cited by:

    1. Drydakis, Nick, 2024. "Business disruptions due to social vulnerability and criminal activities in urban areas," Journal of Criminal Justice, Elsevier, vol. 95(C).
    2. Egana-delSol, Pablo & Vargas-Faulbaum, Luis, 2025. "Artificial Intelligence and the Future of Work: Evidence and Policy Guidelines for Developing Economies," IZA Policy Papers 216, Institute of Labor Economics (IZA).
    3. Wu, Yan & Niu, Peiyuan & Wu, Yunqiao, 2025. "Does the digital sector affiliation matter for the productivity of multinational firms?," Economic Modelling, Elsevier, vol. 144(C).
    4. Huang, Meiying & Li, Quan & Li, Bowen, 2025. "From algorithms to green growth: Can artificial intelligence drive enterprise energy transformation?," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1846-1866.
    5. Minniti, Antonio & Prettner, Klaus & Venturini, Francesco, 2025. "AI innovation and the labor share in European regions," European Economic Review, Elsevier, vol. 177(C).
    6. Yang, Yong & Wang, Yonggui & Wang, Linlin & Wu, Yan, 2024. "Host country household spending and foreign subsidiary performance: The role of local knowledge, entry mode strategies, and the digital economy," Journal of Economic Behavior & Organization, Elsevier, vol. 227(C).
    7. Wang, Rongji & Wan, Wei & Bai, Dongbei & Wang, Jue, 2025. "Digital transformation and corporate diversification: Evidence from China's A-share listed companies," Economic Modelling, Elsevier, vol. 150(C).
    8. Drydakis, Nick, 2024. "Discrimination and Health Outcomes in England's Black Communities Amid the Cost-of-Living Crisis: Evaluating the Role of Inflation and Bank Rates," GLO Discussion Paper Series 1500, Global Labor Organization (GLO).
    9. Drydakis, Nick, 2024. "Small Enterprises' Digital Competencies and Financial Performance," IZA Discussion Papers 17516, Institute of Labor Economics (IZA).
    10. Zhou, Yuwen & Shi, Xin, 2025. "How does digital technology adoption affect corporate employment? Evidence from China," Economic Modelling, Elsevier, vol. 147(C).
    11. Anna Katashvili & Eka Gegeshidze, 2025. "AI-Powered HR Platforms: Transforming Workforce Management Through Intelligent Systems," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 12(2), pages 13-23, October.
    12. Drydakis, Nick, 2025. "The Formation of AI Capital in Higher Education: Enhancing Students’ Academic Performance and Employment Rates," IZA Discussion Papers 18138, Institute of Labor Economics (IZA).
    13. Drydakis, Nick, 2025. "Youth Homelessness, Support Services, and Employment in England," IZA Discussion Papers 17660, Institute of Labor Economics (IZA).
    14. Xie, Jie & Tian, Jiayu & Hu, Yong & Wang, Quan & Dai, Zhaoqiong, 2025. "Imported intermediate goods, intellectual property protection, and innovation in Chinese manufacturing firms," Economic Modelling, Elsevier, vol. 144(C).
    15. Zhou, Kuo & Qu, Zhi & Guo, Yiman & Hu, Runnian, 2025. "Does a firm's intelligent technological transformation matter for its access to financial resources?," Economic Modelling, Elsevier, vol. 149(C).
    16. Drydakis, Nick, 2025. "The Formation of AI Capital in Higher Education: Enhancing Students' Academic Performance and Employment Rates," GLO Discussion Paper Series 1668, Global Labor Organization (GLO).

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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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