Essays on the Economics of Artificial Intelligence and Future of Knowledge Work

Abstract

This dissertation comprises three chapters that dissect the evolving interface between artificial intelligence (AI) and knowledge work, with a particular focus on language and writingbased AI technologies. Chapter 1 describes the scope, scale, and economic value of writing skills within the labor market, presenting descriptive statistics and employing hedonic wage analysis to estimate the salary premiums associated with writing skills. By analyzing administrative data and job postings, it underscores the economic significance of writing proficiency across various professional domains, emphasizing its crucial role in the contemporary workforce. In Chapter 2, attention shifts to the direct influence of generative AI on knowledge work through a randomized field experiment in the copywriting industry. This analysis explores how AI-driven tools not only enhance content creation but also impact productivity, creativity, and workers’ subjective feelings of ownership over their work. The findings illustrate the transformative potential of AI in reshaping creative professions and significantly altering traditional workflows. Chapter 3 investigates the effects of algorithmic resume writing assistance on hiring outcomes for knowledge workers in an online labor market, employing causal text analysis and mediation analysis to uncover the mechanisms through which AI influences hiring decisions. This chapter focuses on text as a mediator, examining how AI-induced adjustments to linguistic properties such as formality and error correction mediate the relationship between AI tool use and hiring outcomes. This examination reveals how subtle changes to linguistic properties can significantly affect job seekers’ success, underscoring the practical benefits and complexities of integrating AI into hiring practices. Together, these chapters offer a comprehensive exploration of how AI technologies, particularly those focused on language and writing, are redefining the landscape of knowledge work. By highlighting the interactions between writing skills, technological innovation, and employment, this dissertation sheds light on the critical role of writing in the contemporary job market and the significant impact of AI advancements on professional content creation.