IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp18723.html

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
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp18723.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James Bessen, 2018. "Artificial Intelligence and Jobs: The Role of Demand," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 291-307, National Bureau of Economic Research, Inc.
    2. Stephany, Fabian & Teutloff, Ole, 2024. "What is the price of a skill? The value of complementarity," Research Policy, Elsevier, vol. 53(1).
    3. Kahn, Lisa B., 2010. "The long-term labor market consequences of graduating from college in a bad economy," Labour Economics, Elsevier, vol. 17(2), pages 303-316, April.
    4. Daron Acemoglu & Pascual Restrepo, 2019. "Automation and New Tasks: How Technology Displaces and Reinstates Labor," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 3-30, Spring.
    5. David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
    6. Erik Brynjolfsson & Danielle Li & Lindsey Raymond, 2025. "Generative AI at Work," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 140(2), pages 889-942.
    7. Brad Hershbein & Lisa B. Kahn, 2018. "Do Recessions Accelerate Routine-Biased Technological Change? Evidence from Vacancy Postings," American Economic Review, American Economic Association, vol. 108(7), pages 1737-1772, July.
    8. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2012. "The Short- and Long-Term Career Effects of Graduating in a Recession," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 1-29, January.
    9. Garth Frazer & Johannes Van Biesebroeck, 2010. "Trade Growth under the African Growth and Opportunity Act," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 128-144, February.
    10. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2006. "The Polarization of the U.S. Labor Market," American Economic Review, American Economic Association, vol. 96(2), pages 189-194, May.
    11. Alicia Sasser Modestino & Mary A. Burke & Shahriar Sadighi & Rachel Sederberg & Tomer Stern & Bledi Taska, 2026. "No Longer Qualified? Changes in the Supply and Demand for Skills within Occupations," ILR Review, Cornell University, ILR School, vol. 79(3), pages 486-522, May.
    12. Alicia Sasser Modestino & Daniel Shoag & Joshua Ballance, 2020. "Upskilling: Do Employers Demand Greater Skill When Workers Are Plentiful?," The Review of Economics and Statistics, MIT Press, vol. 102(4), pages 793-805, October.
    13. Kristina McElheran & J. Frank Li & Erik Brynjolfsson & Zachary Kroff & Emin Dinlersoz & Lucia Foster & Nikolas Zolas, 2024. "AI adoption in America: Who, what, and where," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 33(2), pages 375-415, March.
    14. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    15. Modestino, Alicia Sasser & Shoag, Daniel & Ballance, Joshua, 2016. "Downskilling: changes in employer skill requirements over the business cycle," Labour Economics, Elsevier, vol. 41(C), pages 333-347.
    16. Ozge Demirci & Jonas Hannane & Xinrong Zhu, 2025. "Who Is AI Replacing? The Impact of Generative AI on Online Freelancing Platforms," Management Science, INFORMS, vol. 71(10), pages 8097-8108, October.
    17. Justin R. Pierce & Peter K. Schott, 2016. "The Surprisingly Swift Decline of US Manufacturing Employment," American Economic Review, American Economic Association, vol. 106(7), pages 1632-1662, July.
    18. Arntz, Melanie & Gregory, Terry & Zierahn, Ulrich, 2017. "Revisiting the risk of automation," Economics Letters, Elsevier, vol. 159(C), pages 157-160.
    19. David J. Deming, 2017. "The Growing Importance of Social Skills in the Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1593-1640.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Evans & Claire Mason & Haohui Chen & Andrew Reeson, 2024. "Accelerated demand for interpersonal skills in the Australian post-pandemic labour market," Nature Human Behaviour, Nature, vol. 8(1), pages 32-42, January.
    2. Emilio Colombo & Alberto Marcato, 2021. "Skill Demand and Labour Market Concentration: Theory and Evidence from Italian Vacancies," DISEIS - Quaderni del Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo dis2104, Università Cattolica del Sacro Cuore, Dipartimento di Economia internazionale, delle istituzioni e dello sviluppo (DISEIS).
    3. Soohyoung Lee & Dawoon Jeong & Jeong-Dong Lee, 2026. "Contrasting pathways of automation: routine task substitution vs. AI complementarity," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-11, December.
    4. Ludger Woessmann, 2024. "Skills and Earnings: A Multidimensional Perspective on Human Capital," CESifo Working Paper Series 11428, CESifo.
    5. Rony, Sidharth, 2026. "LLM Meets Job Advertisements: Unmasking Skill Premia in the UK," MERIT Working Papers 010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Xiliu He & Haoxiang Zhao & Mingyi Ma & Edward Wen Chuan Lai & Koei Enomoto & Anni Hu & Jiatong Li & Lingyun Chu & Yuan Lai, 2026. "Generative AI impacts on intra-urban inequality and skill premium in Beijing," Papers 2605.25505, arXiv.org.
    7. Consoli, Davide & Marin, Giovanni & Rentocchini, Francesco & Vona, Francesco, 2023. "Routinization, within-occupation task changes and long-run employment dynamics," Research Policy, Elsevier, vol. 52(1).
    8. Prashant Garg & Tommaso Crosta & Jasmin Baier, 2026. "Global Automation Atlas," Papers 2605.17086, arXiv.org, revised Jul 2026.
    9. Zilian, Laura S. & Zilian, Stella S. & Jäger, Georg, 2021. "Labour market polarisation revisited: evidence from Austrian vacancy data," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 55, pages 1-007.
    10. Caselli, Mauro & Fracasso, Andrea & Scicchitano, Sergio & Traverso, Silvio & Tundis, Enrico, 2025. "What workers and robots do: An activity-based analysis of the impact of robotization on changes in local employment," Research Policy, Elsevier, vol. 54(1).
    11. Avner Ben-Ner & Ainhoa Urtasun & Bledi Taska, 2023. "Effects of New Technologies on Work: The Case of Additive Manufacturing," ILR Review, Cornell University, ILR School, vol. 76(2), pages 255-289, March.
    12. David Deming & Lisa B. Kahn, 2018. "Skill Requirements across Firms and Labor Markets: Evidence from Job Postings for Professionals," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 337-369.
    13. Seth Gordon Benzell & Kyle R. Myers, 2026. "Automation Experiments and Inequality," NBER Working Papers 34668, National Bureau of Economic Research, Inc.
    14. Guo, Junjie, 2022. "The persistent impact of multiple offers," Labour Economics, Elsevier, vol. 74(C).
    15. Usabiaga, Carlos & Núñez, Fernando & Arendt, Lukasz & Gałecka-Burdziak, Ewa & Pater, Robert, 2022. "Skill requirements and labour polarisation: An association analysis based on Polish online job offers," Economic Modelling, Elsevier, vol. 115(C).
    16. David Autor & Caroline Chin & Anna Salomons & Bryan Seegmiller, 2024. "New Frontiers: The Origins and Content of New Work, 1940–2018," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(3), pages 1399-1465.
    17. Anderlik Jasmin & Jumaniyozova Malika & Schmidpeter Bernhard & Winter-Ebmer Rudolf, 2025. "Monopsony: Wages, Wage Bargaining and Job Requirements," German Economic Review, De Gruyter, vol. 26(4), pages 395-420.
    18. Vezza, Evelyn & Zunino,Gonzalo & Laguinge,Luis & Moroz, Harry Edmund & Apella, Ignacio Raul & Spivack, Marla Hillary, 2025. "Understanding Labor Market Demand in Real Time in Argentina and Uruguay," Policy Research Working Paper Series 11086, The World Bank.
    19. FUKAO, Kyoji & IKEUCHI, Kenta & NAGAYA, Yoshiaki & PERUGINI, Cristiano & POMPEI, Fabrizio, 2026. "Automation Risk, Innovative Capital, and Labour Market Outcomes : Evidence from Japan," CEI Working Paper Series 2026-03, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    20. Jasmine Mondolo, 2022. "The composite link between technological change and employment: A survey of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1027-1068, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp18723. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Fallak (email available below). General contact details of provider: https://edirc.repec.org/data/izaaalu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.