# Artificial intelligence and the skill premium

arXiv: https://arxiv.org/abs/2311.09255 · HTML: https://mlsanity.com/paper/2311.09255/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 0 of its 43 references that are in the map.
- First posted on arXiv 14 Nov 2023.

## Abstract (arXiv)

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.