This paper examines the causal impact of generative artificial intelligence on U.S. labor demand using online job posting data. Exploiting ChatGPT’s release in November 2022 as an exogenous shock, the paper applies difference-in-differences and event study designs to estimate the job displacement effects of generative artificial intelligence. The identification strategy compares labor demand for occupations with high versus low artificial intelligence substitution vulnerability following ChatGPT’s launch, conditioning on similar generative artificial intelligence exposure levels to isolate
substitution effects from complementary uses. The analysis uses 285 million job postings collected by Lightcast from the first quarter of 2018 to the second quarter of 2025Q2. The findings show that the number of postings for occupations with above-median artificial intelligence substitution scores fell by an average of 12 percent relative to those with below-median scores. The effect increased
from 6 percent in the first year after the launch to 18 percent by the third year. Losses were particularly acute for entry-level positions that require neither advanced degrees (18 percent) nor extensive experience (20 percent), as well as those in administrative support (40 percent) and professional services (30 percent). Although generative artificial intelligence generates new occupations and enhances productivity, which may increase labor demand, early evidence suggests that some occupations may be less likely to be complemented by generative artificial intelligence than others.
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced on two systems with the following specifications:
• Computer 1 - Stata:
– OS: Windows 11 Enterprise, version 24H2
– Processor: Intel(R) Core(TM) Ultra 7 165U (2.10 GHz)
– Memory available: 32 GB
• Databricks - R and Python:
– Runtime: 16.4, Spark 3.5.2, Scala 2.12
– Driver: Standard_D16ds_v4, 64GB, 16 Cores
– Worker: Standard_D16ds_v4, 64GB, 16Cores
Runtime: 24 hours.
1. Access the data: Three datasets used by the reproducibility package are not included in it. Users need to gain access to all data to be able to run the code. See the README and Datasets description for details.
2. Run the Stata code: Modify the file path in the do-file "OccupationLevelData" and run it.
3. Run the Python and R notebooks on Databricks: The notebooks in the folder "noteboom/" run on Databricks. Once they are placed in a Databricks workspace, they need to run in the following order: "1 LightCast Data Aggregation.ipynb", "2 Prepare Data for Analysis.ipynb", and "3 Results.ipynb".
Since not all the data are included, the package includes the results produced in the reproducibility verification. These files can be used to review the results presented in the paper.
Some data is restricted and has not been included in the reproducibility package. For more details, please refer to the README file.
| Author | Affiliation | |
|---|---|---|
| Yan Liu | World Bank | yanliu@worldbank.org |
| Shu Yu | World Bank | syu2@worldbank.org |
| He Wang | World Bank | hwang21@worldbank.org |
2025-11-18
| Location | Code |
|---|---|
| United States of America | USA |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
| Name | URI |
|---|---|
| Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
| Name | Affiliation | |
|---|---|---|
| Yan Liu | World Bank | yanliu@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DECDI | World Bank - Development Impact Department | Verification and preparation of metadata |
2025-11-18
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