Artificial intelligence and the demand for skills in Russia

Abstract

The problem of digital transformation of the labor market is widely discussed in the current scientific literature. In the context of the rapid spread of modern information technologies, in particular artificial intelligence (AI), many companies inevitably face difficulties in hiring highly qualified personnel. At the same time, research still lacks a clear understanding of the pace of AI adoption in different occupations, as well as what knowledge, skills, and abilities are actually in demand by employers. This study analyzes the demand for worker skills and the salaries offered by employers within firms, industries, and occupations. By focusing on AI skills, this paper adapts and extends the application of mainstream empirical methodology to the understudied context of the Russian labor market. The study uses data from firms and online job advertisements for the period from 2007 to 2020, and conducts econometric analysis to estimate the demand for skills. The results of the study show a rapid growth in the demand for AI skills in Russia, which is associated with significant wage premiums for these skills. However, when combined with other skills, the effect of AI skills can be negated. For example, the results suggest that basic and advanced computer skills are negatively complementary in terms of demand, which may lead to lower wages. Moreover, in the context of the Russian labor market, the demand for nontechnical skills in AI-related jobs is not associated with offering higher wages