Year: 2026
Type: dissertation
Abstract: This thesis reviews a broad selection of the available empirical and theoretical literature on the effects of generative AI tools on characteristically cognitive white-collar labor markets. I begin by shortly reviewing the historical effects of techno-logical change on wages and employment, and by introducing the relevant theoretical labor market frameworks. I then review empirical literature providing evidence for the compression of skill differentials between workers of different experience levels, as well as for the polarization of macro-level returns towards generative AI-exposed “superstar” firms. My review finds evidence for both of these effects, and the subsequent discussion section attempts to synthesize a coherent account of the seemingly paradoxical effects’ simultaneous occurrence, as well as provide speculation for future research on possible developments and hypothetical scenarios conditional on the development of trends in how firms continue to utilize generative AI tools as a part of their routine workflows.
Source: Aaltodoc (Aalto University)
Author: Pirttiaho, Atte
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7213375586