Labor Demand in the Age of Generative AI Early Evidence from the U.S. Job Posting Data

2026

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This paper provides early evidence on the causal impact of generative AI on U.S. labor demand, revealing significant job displacement effects for occupations with higher AI substitution vulnerability.

* Analyzes the causal impact of generative AI on U.S. labor demand using online job posting data.
* Exploits ChatGPT's release as an exogenous shock to estimate job displacement effects using difference-in-differences and event study designs.
* Finds that occupations with above-median AI substitution scores experienced a 12% decline in job postings, with effects intensifying over time and disproportionately affecting entry-level and less-skilled workers.

Tags: Generative AI, Labor Demand, Job Postings, AI Substitution, ChatGPT

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