Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316993 
Year of Publication: 
2024
Series/Report no.: 
ETLA Working Papers No. 121
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract: 
This study examines the short-term impact of generative artificial intelligence (GAI) on employment and wages using data covering all wage earners from Finland. Employing a synthetic difference-in-differences approach, we analyze how the launch of ChatGPT affected occupations with varying levels of exposure to GAI. Our findings reveal that wages increased more in highly GAI-exposed occupations compared to less exposed ones following ChatGPT's introduction. However, we do not observe statistically significant changes in employment levels between more and less exposed occupations. Additional analyses comparing more- and less-exposed occupations within specific occupational groups yield qualitatively similar results. These findings contrast with some previous studies on online labor markets but align more closely with research using nationally representative data. The positive wage effect observed in AI-exposed occupations could indicate that GAI is primarily enhancing rather than replacing human labor. The lack of significant employment effects might suggest that the impact of GAI on job creation or destruction may take longer to materialize or might be offset by other factors in the labor market.
Subjects: 
Generative artificial intelligence
Technological change
Employment
Wages
Occupations
JEL: 
E24
J21
O33
Document Type: 
Working Paper

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