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The Elusive Returns to AI Skills: Evidence from a Field Experiment

Author

Listed:
  • Teo Firpo

    (Humboldt-Universität zu Berlin)

  • Lukas Niemann

    (Tanso Technologies)

  • Anastasia Danilov

    (Humboldt-Universität zu Berlin)

Abstract

As firms increasingly adopt Artificial Intelligence (AI) technologies, how they adjust hiring practices for skilled workers remains unclear. This paper investigates whether AI-related skills are rewarded in talent recruitment by conducting a large-scale correspondence study in the United Kingdom. We submit 1,185 résumés to vacancies across a range of occupations, randomly assigning the presence or absence of advanced AI-related qualifications. These AI qualifications are added to résumés as voluntary signals and not explicitly requested in the job postings. We find no statistically significant effect of listing AI qualifications in résumés on interview callback rates. However, a heterogeneity analysis reveals some positive and significant effects for positions in Engineering and Marketing. These results are robust to controlling for the total number of skills listed in job ads, the degree of match between résumés and job descriptions, and the level of expertise required. In an exploratory analysis, we find stronger employer responses to AI-related skills in industries with lower exposure to AI technologies. These findings suggest that the labor market valuation of AI-related qualifications is context-dependent and shaped by sectoral innovation dynamics.

Suggested Citation

  • Teo Firpo & Lukas Niemann & Anastasia Danilov, 2025. "The Elusive Returns to AI Skills: Evidence from a Field Experiment," Rationality and Competition Discussion Paper Series 552, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:552
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    References listed on IDEAS

    as
    1. Alekseeva, Liudmila & Azar, José & Giné, Mireia & Samila, Sampsa & Taska, Bledi, 2021. "The demand for AI skills in the labor market," Labour Economics, Elsevier, vol. 71(C).
    2. Dieter Verhaest & Elene Bogaert & Jeroen Dereymaeker & Laura Mestdagh & Stijn Baert, 2018. "Do Employers Prefer Overqualified Graduates? A Field Experiment," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 57(3), pages 361-388, July.
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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