%0 Report
        %A Bloom, David E.
%A Prettner, Klaus
%A Saadaoui, Jamel
%A Veruete, Mario
        %T Artificial Intelligence and the Skill Premium
        %D 2024
        %8 2024 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 16972
        %U https://www.iza.org/index.php/publications/dp16972
        %X How will the emergence of ChatGPT and other forms of artificial intelligence (AI) affect the skill premium? To address this question, we propose a nested constant elasticity of substitution production function that distinguishes among three types of capital: traditional physical capital (machines, assembly lines), industrial robots, and AI. Following the literature, we assume that industrial robots predominantly substitute for low-skill workers, whereas AI mainly helps to perform the tasks of high-skill workers. We show that AI reduces the skill premium as long as it is more substitutable for high-skill workers than low-skill workers are for high-skill workers.
        %K automation
%K artificial intelligence
%K ChatGPT
%K skill premium
%K wages
%K productivity