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Generative AI and the Changing Demand for Skills

Author

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  • Marie-Renée Andreescu

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris)

  • Éric Maurin

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris)

Abstract

Using data from the French Public Employment Service linked to social security records, we examine the shifts in the supply of and demand for information technology (IT) skills that followed the recent emergence of generative artificial intelligence (GenAI). We show that the large-scale deployment of GenAI tools between late 2022 and late 2023 was followed by a sharp decline in vacancies for IT-specialist jobs and, more broadly, for jobs requiring IT skills. While relative wages remained largely unchanged, jobs requiring IT skills also experienced a substantial increase in applicants per vacancy and a marked decline in hiring. These findings are consistent with a model in which GenAI and natural-language coding boost the productivity not only of expert programmers but also of ordinary software users, particularly the least skilled. Tensions in the labor market are all the more acute because, as the required skill levels decline, various IT-exposed jobs become accessible to a broader pool of candidates.

Suggested Citation

  • Marie-Renée Andreescu & Éric Maurin, 2026. "Generative AI and the Changing Demand for Skills," PSE Working Papers halshs-05742312, HAL.
    • Handle: RePEc:hal:psewpa:halshs-05742312
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-05742312v1
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