Pyramids, Diamonds, and Oscillations: AI and the Structure of Internal Labor Markets

2026

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AI-generated summary

1) This paper models how AI impacts internal labor markets, potentially transforming traditional pyramid structures into diamonds and creating oscillations in hiring and career progression.

2) * Explores the theoretical implications of AI on firm hierarchies, wage structures, and employment dynamics.
* Develops a dynamic general equilibrium model to analyze the transition from pyramid to diamond structures.
* Discusses empirical evidence from job postings data to support the theoretical findings.

3) AI, labor markets, internal labor markets, firm hierarchy, career progression

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