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Economics of ChatGPT: A Labor Market View on the Occupational Impact of Artificial Intelligence

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  • Zarifhonarvar, Ali

Abstract

This study examines how ChatGPT affects the labor market. I first thoroughly analyzed the prior research that has been done on the subject in order to start understanding how ChatGPT and other AI-related services are influencing the labor market. Using the supply and demand model, I then assess ChatGPT's impact. This paper examines this innovation's short- and long-term effects on the labor market, concentrating on its challenges and opportunities. Furthermore, I employ a text-mining approach to extract various tasks from the International Standard Occupation Classification to present a comprehensive list of occupations most sensitive to ChatGPT.

Suggested Citation

  • Zarifhonarvar, Ali, 2023. "Economics of ChatGPT: A Labor Market View on the Occupational Impact of Artificial Intelligence," EconStor Preprints 268826, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:268826
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    References listed on IDEAS

    as
    1. Genz, Sabrina & Gregory, Terry & Janser, Markus & Lehmer, Florian & Matthes, Britta, 2021. "How do workers adjust when firms adopt new technologies?," ZEW Discussion Papers 21-073, ZEW - Leibniz Centre for European Economic Research.
    2. Benjamin Moll & Lukasz Rachel & Pascual Restrepo, 2022. "Uneven Growth: Automation's Impact on Income and Wealth Inequality," Econometrica, Econometric Society, vol. 90(6), pages 2645-2683, November.
    3. Sean Cao & Wei Jiang & Junbo L. Wang & Baozhong Yang, 2021. "From Man vs. Machine to Man + Machine: The Art and AI of Stock Analyses," NBER Working Papers 28800, National Bureau of Economic Research, Inc.
    4. Daron Acemoglu & David Autor & Jonathon Hazell & Pascual Restrepo, 2020. "AI and Jobs: Evidence from Online Vacancies," Working Papers 279, Princeton University, Department of Economics, Center for Economic Policy Studies..
    5. Jacopo Staccioli & Maria Enrica Virgillito, 2021. "Back to the past: the historical roots of labor-saving automation," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 27-57, March.
    6. Daron Acemoglu & David Autor & Jonathon Hazell & Pascual Restrepo, 2020. "AI and Jobs: Evidence from Online Vacancies," Working Papers 279, Princeton University, Department of Economics, Center for Economic Policy Studies..
    7. Ali Zarifhonarvar, 2023. "A Survey on the Impact of Covid-19 on the Labor Market," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 9(1), pages 1-10, 03-2023.
    8. David Autor, 2022. "The Labor Market Impacts of Technological Change: From Unbridled Enthusiasm to Qualified Optimism to Vast Uncertainty," NBER Working Papers 30074, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nilufar U. Babakhanova & Aijan B. Dzhumanova & Marija A. Troyanskaya & Stanislav Benčič & Yelena S. Petrenko, 2024. "SAP-LAP Model of Change Management for the Sustainable Employment of the Population in the Conditions of Dissemination of AI," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(1), pages 91-109, September.
    2. Fadi Bou Reslan & Nada Jabbour Al Maalouf, 2024. "Assessing the Transformative Impact of AI Adoption on Efficiency, Fraud Detection, and Skill Dynamics in Accounting Practices," JRFM, MDPI, vol. 17(12), pages 1-16, December.
    3. Roman Rakowski & Petra Kowaliková, 2024. "The political and social contradictions of the human and online environment in the context of artificial intelligence applications," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    4. Albert Weichselbraun & Norman Süsstrunk & Roger Waldvogel & André Glatzl & Adrian M. P. Braşoveanu & Arno Scharl, 2024. "Anticipating Job Market Demands—A Deep Learning Approach to Determining the Future Readiness of Professional Skills," Future Internet, MDPI, vol. 16(5), pages 1-19, April.
    5. Samir Huseynov, 2023. "ChatGPT and the Labor Market: Unraveling the Effect of AI Discussions on Students' Earnings Expectations," Papers 2305.11900, arXiv.org, revised Aug 2023.
    6. Elzbieta M. Kacperska & Joanna Stefanczyk & Pawel J. Dabrowski & Wieslawa Zaloga, 2024. "The Consequences of Implementing Artificial Intelligence Technology in the Digital Economy from the Perspective of Generation Z," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 1039-1057.
    7. Wei, Xinyi & Chu, Xiaoyuan & Geng, Jingyu & Wang, Yuhui & Wang, Pengcheng & Wang, HongXia & Wang, Caiyu & Lei, Li, 2024. "Societal impacts of chatbot and mitigation strategies for negative impacts: A large-scale qualitative survey of ChatGPT users," Technology in Society, Elsevier, vol. 77(C).

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    More about this item

    Keywords

    Large Language Models; Artificial Intelligence; Automation; Labor Saving Technology; ChatGPT; Labor Market; Generative AI; Occupational Classification;
    All these keywords.

    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
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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