@TechReport{iza:izadps:dp18565,
            	author={Freund, Lukas and Mann, Lukas},
            	title={Job Transformation, Specialization, and the Labor Market Effects of AI},
            	year={2026},
	month={Apr},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={18565},
            	url={https://www.iza.org/publications/dp18565},
	abstract={A central effect of automation is to transform jobs - shifting their task content. We develop a general-equilibrium model of this process. Occupations bundle tasks; workers possess task-specific skills and sort by comparative advantage. When a task is automated, remaining tasks gain in importance, so wage effects depend on workers’ full skill profiles. We estimate the distribution of task-specific skills and project individual-level wage effects of generative AI automation. Moderate exposure benefits workers on average but high exposure harms them, with large dispersion within occupations; the return to social skills rises, that to analytical skills falls; and low-earners gain more than high-earners. Job transformation drives these results.},
	keywords={AI;bundling;labor markets;skills;task model},
            }