Still Waters, Rapid Currents: Early Labor Market Transformation under Generative AI

Paper · Source
Domain Specialization in LLMs

Source: Humlum, Vestergaard, NBER w33777 · 2026-03

We study the early labor market impacts of AI chatbots by linking large-scale adoption surveys to administrative labor market records in Denmark. We document rapid currents: most employers in exposed occupations have adopted chatbot initiatives, workers report productivity benefits, and new AI-related tasks are widespread. Yet these currents have not broken the surface: using difference-indifferences, we estimate precise null effects on earnings and recorded hours at both the worker and workplace levels, ruling out effects larger than 2% two years after the launch of ChatGPT. What moves is the structure of work: employers absorb AI through task reorganization—including new tasks in content generation, AI oversight, and AI integration—and adopters transition into higher-paying occupations where AI chatbots are more relevant, though still too few to move average earnings. Technological change reshapes work well before it surfaces in earnings or hours.

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