TY  - RPRT
        AU  - Bloom, David E.
AU  - Prettner, Klaus
AU  - Saadaoui, Jamel
AU  - Veruete, Mario
        TI  - Artificial Intelligence and the Skill Premium
        PY  - 2024/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16972
        UR  - https://www.iza.org/publications/dp16972
        AB  - 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.
        KW  - automation
KW  - artificial intelligence
KW  - ChatGPT
KW  - skill premium
KW  - wages
KW  - productivity
        ER  -