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Generative AI and the Redefinition of Entry-Level Software Work

Author

Listed:
  • Westby, Samuel

    (Northeastern University)

  • Modestino, Alicia

    (Northeastern University)

  • Cheng, Peiran

    (Northeastern University)

Abstract

Generative AI may change how firms define occupations. We study this process in software development, where large language models overlap with tasks commonly assigned to junior workers. Using the near-universe U.S. online vacancy data from Lightcast, we examine how the public release of ChatGPT changed entry-level software hiring standards. Event-study and difference-in-differences estimates show a 14–15 percent relative decline in junior versus senior software developer vacancies, larger than in related technical occupations and absent in mechanical engineering. A shift-share decomposition shows that rising experience requirements were driven primarily by employers asking for more experience within the same job titles, not by asking for a different composition of titles. Remaining junior vacancies shifted toward problem solving, communication, and attention to detail, not AI-specific skills. The results show how generative AI redefines entry-level work by raising the bar for what counts as a qualified junior hire.

Suggested Citation

  • Westby, Samuel & Modestino, Alicia & Cheng, Peiran, 2026. "Generative AI and the Redefinition of Entry-Level Software Work," IZA Discussion Papers 18723, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18723
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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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