The Demand for AI Skills in the Labor Market

55 Pages Posted: 25 Oct 2019 Last revised: 16 Dec 2020

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

Multiple version iconThere are 2 versions of this paper

Date Written: October 16, 2019

Abstract

Using detailed data on skill requirements in online vacancies, we estimate the demand for AI specialists across occupations, sectors, and firms. We document a dramatic increase in the demand for AI skills over 2010-2019 in the U.S. economy across most industries and occupations. The demand is highest in IT occupations, followed by architecture and engineering, scientific, and management occupations. Firms with larger market capitalization, higher cash holdings, and higher investments in R&D have a higher demand for AI skills. We also document a wage premium of 11% for job postings that require AI skills within the same firm and 5% within the same job title. Managerial occupations have the highest wage premium for AI skills. Firms demanding AI skills more intensively also offer higher salaries in non-AI jobs.

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 or http://dx.doi.org/10.2139/ssrn.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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