This study explores the impact of "AI capital," defined as a vector of knowledge, skills, and capabilities related to AI technologies, on employment prospects. The research uses a correspondence test in England to examine the effects of AI knowledge obtained through an AI business module on job interviews and wages. Key findings include:
1. **Employment Prospects**: University graduates with AI capital, obtained through an AI business module, received more job interview invitations compared to those without AI capital. This advantage was particularly pronounced in large firms, where applicants with AI capital were invited to interviews for higher-paying positions.
2. **Wage Sorting**: Graduates with AI capital were offered higher wages in both male and female job applications. The difference in wages was approximately 12.3% for male applicants and 13.3% for female applicants.
3. **Hypotheses Acceptance**: Both hypotheses were accepted, indicating that job applicants with AI capital have a higher probability of receiving interview invitations and experience higher wages in large firms compared to those without AI capital.
4. **Experimental Design**: The study used a correspondence test to minimize unobserved heterogeneities and ensure comparable job applications. The experimental design effectively signaled AI specialization in job applications, attracting firms interested in AI technologies.
5. **Sample Characteristics**: The study involved 2,676 job observations, with a focus on entry-level business jobs in the private sector. The sample included a mix of small-to-medium and large firms, and the data covered various occupations such as accounting, business administration, economics, and finance.
6. **Statistical Analysis**: Probit and OLS models were used to estimate the effects of AI capital on employment prospects and wage sorting. The results consistently showed that AI capital significantly increased the likelihood of receiving interview invitations and improved wage prospects.
The study concludes that AI capital can positively affect employment prospects, especially in large firms, and highlights the importance of educational programs and training interventions to support individuals' AI capital development.This study explores the impact of "AI capital," defined as a vector of knowledge, skills, and capabilities related to AI technologies, on employment prospects. The research uses a correspondence test in England to examine the effects of AI knowledge obtained through an AI business module on job interviews and wages. Key findings include:
1. **Employment Prospects**: University graduates with AI capital, obtained through an AI business module, received more job interview invitations compared to those without AI capital. This advantage was particularly pronounced in large firms, where applicants with AI capital were invited to interviews for higher-paying positions.
2. **Wage Sorting**: Graduates with AI capital were offered higher wages in both male and female job applications. The difference in wages was approximately 12.3% for male applicants and 13.3% for female applicants.
3. **Hypotheses Acceptance**: Both hypotheses were accepted, indicating that job applicants with AI capital have a higher probability of receiving interview invitations and experience higher wages in large firms compared to those without AI capital.
4. **Experimental Design**: The study used a correspondence test to minimize unobserved heterogeneities and ensure comparable job applications. The experimental design effectively signaled AI specialization in job applications, attracting firms interested in AI technologies.
5. **Sample Characteristics**: The study involved 2,676 job observations, with a focus on entry-level business jobs in the private sector. The sample included a mix of small-to-medium and large firms, and the data covered various occupations such as accounting, business administration, economics, and finance.
6. **Statistical Analysis**: Probit and OLS models were used to estimate the effects of AI capital on employment prospects and wage sorting. The results consistently showed that AI capital significantly increased the likelihood of receiving interview invitations and improved wage prospects.
The study concludes that AI capital can positively affect employment prospects, especially in large firms, and highlights the importance of educational programs and training interventions to support individuals' AI capital development.