Working Paper No. 378: Returns to AI skills

Abstract

This paper assesses whether workers who develop and apply artificial intelligence experience an earnings premium. I link skill requirements specified in job vacancies to the individuals ultimately hired to fill those positions using a combination of Swedish job vacancy and matched employer-employee register data. By identifying positions that explicitly necessitate AI skills, this paper seeks to determine if an earnings premium is associated with these skills while controlling for other individual attributes. Findings suggest a significant earnings premium for individuals hired to positions requiring AI skills. Discerning between AI developers and AI users, the results indicate that the former group experiences a stronger earnings premium. The premium is partly driven by workers being hired into high-wage industries. However, transitioning into roles requiring AI skills does not result in additional earnings increases, indicating that firms do not engage in wage competition for these workers.