@techreport{e950e0b9470246c6b76ad187a6737540,
title = "Artificial intelligence and the skill premium",
abstract = "What will likely be the effect of the emergence of ChatGPT and other forms of artificial intelligence (AI) on the skill premium? To address this question, we develop a nested constant elasticity of substitution production function that distinguishes between industrial robots and AI. 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.",
keywords = "Automation, Artificial Intelligence, ChatGPT, Skill Premium, Wages, Productivity",
author = "{David E.}, Bloom and Klaus Prettner and Jamel Saadaoui and Mario Veruete",
year = "2023",
month = dec,
doi = "10.57938/e950e0b9-4702-46c6-b76a-d187a6737540",
language = "English",
series = "Department of Economics Working Paper Series",
number = "353",
publisher = "WU Vienna University of Economics and Business",
address = "Austria",
type = "WorkingPaper",
institution = "WU Vienna University of Economics and Business",
}