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IZA Discussion Paper No. 18723
June 2026
Generative AI and the Redefinition of Entry-Level Software Work
Samuel Westby, Alicia Sasser Modestino, Peiran Cheng

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.

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Mark Fallak
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World of Labour
Olga Nottmeyer
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+352 585-855-501
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Christina Gathmann
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The IZA@LISER Network is a global community of scholars dedicated to excellence in labor economics and related fields, now coordinated at the Luxembourg Institute of Socio-Economic Research (LISER) following its transition from Bonn.

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