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Pay and Beyond: The Evolving Rewards for AI Skills

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  • Alejandra Castaneda
  • Matthew Bone
  • Fabian Stephany

Abstract

This study examines the monetary and non-monetary rewards advertised in job vacancies requiring artificial intelligence skills in the U.S. labor market. Using approximately ten million online job vacancies posted between 2018 and 2025, we examine the development of AI demand, wage premia, and non-monetary benefits, including tuition assistance, paid leave, health and well-being programs, parental leave, inclusive workplace language, and remote work, across firms of different sizes. We find that demand for AI skills increased sharply following the introduction of generative AI in late 2022 across small and medium-sized enterprises (SMEs), large firms, and S&P 500 firms, while AI wage premia rose most strongly among SMEs. AI vacancies are significantly more likely than comparable non-AI roles to advertise non-monetary benefits, particularly remote work, inclusive culture, and parental leave. This premium is strongest among SMEs and large firms, but weaker among S&P 500 firms. Finally, we show that the relationship between wages and benefits shifted after the spread of generative AI: whereas complementarity between high wages and benefits was previously concentrated among S&P 500 firms, and substitution among SMEs, the difference across firm sizes has attenuated. Our findings indicate that the increased demand for AI skills has been accompanied by changes in compensation patterns beyond pay, as employers across the size distribution combine monetary and non-monetary rewards to recruit AI-skilled workers.

Suggested Citation

  • Alejandra Castaneda & Matthew Bone & Fabian Stephany, 2025. "Pay and Beyond: The Evolving Rewards for AI Skills," Papers 2507.20410, arXiv.org, revised Nov 2026.
    • Handle: RePEc:arx:papers:2507.20410
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    References listed on IDEAS

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