The Demand for AI Skills in the Labor Market

38 Pages Posted: 25 Oct 2019

See all articles by Liudmila Alekseeva

Liudmila Alekseeva

University of Navarra, IESE Business School

José Azar

University of Navarra, IESE Business School; CEPR

Mireia Gine

IESE Business School, University of Navarra ; The University of Pennsylvania

Sampsa Samila

University of Navarra, IESE Business School

Bledi Taska

Burning Glass Technologies

Date Written: October 16, 2019

Abstract

We document a dramatic increase in the demand for AI skills in online job postings over the period 2010-2019. The demand for AI skills is highest in IT occupations, followed by architecture/engineering, life/physical/social sciences, and management. The sectors with the highest demand for AI are in- formation, professional services, and finance. At the firm level, a higher demand for AI skills is associated in the cross-section with larger market capitalization, higher cash holdings, and higher investments in R&D. We also document a large wage premium for job postings that require AI skills, as well as a wage premium for non-AI vacancies posted by firms with a high share of AI vacancies. Interestingly, managerial occupations have the highest wage premium for AI skills.

Keywords: artificial intelligence, machine learning, wage premium, technology diffusion

JEL Classification: J23, J31, O33

Suggested Citation

Alekseeva, Liudmila and Azar, José and Gine, Mireia and Samila, Sampsa and Taska, Bledi, The Demand for AI Skills in the Labor Market (October 16, 2019). Available at SSRN: https://ssrn.com/abstract=3470610

Liudmila Alekseeva

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

José Azar

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

CEPR ( email )

London
United Kingdom

HOME PAGE: http://https://sites.google.com/site/joseazar/

Mireia Gine

IESE Business School, University of Navarra ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

The University of Pennsylvania ( email )

Philadelphia, PA 19104
United States

Sampsa Samila (Contact Author)

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

Bledi Taska

Burning Glass Technologies ( email )

One Lewis Wharf
Boston, MA 02110
United States

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