Publications
Publications
- 2024
- HBS Working Paper Series
Displacement or Complementarity? The Labor Market Impact of Generative AI
By: Wilbur Xinyuan Chen, Suraj Srinivasan and Saleh Zakerinia
Abstract
Generative AI is poised to reshape the labor market, affecting cognitive and white-collar occupations in ways distinct from past technological revolutions. This study examines whether generative AI displaces workers or augments their jobs by analyzing labor demand and skill requirements across occupations. Our findings reveal a heterogeneous effect: generative AI-driven automation reduces labor demand and skill requirements in structured cognitive-task jobs, while increasing both demand and skill complexity in positions that involve human-AI collaboration. These results highlight the importance of understanding generative AI's nuanced impact on the labor market and designing targeted policies to mitigate job displacement while supporting skills development for human-AI collaboration.
Keywords
Generative Ai; Labor Market; Automation And Augmentation; Labor; AI and Machine Learning; Competency and Skills
Citation
Chen, Wilbur Xinyuan, Suraj Srinivasan, and Saleh Zakerinia. "Displacement or Complementarity? The Labor Market Impact of Generative AI." Harvard Business School Working Paper, No. 25-039, December 2024.