Thread by @erikbryn

If you're registered for the ASSA meeting, there's a great presentation about AI and Labor starting now:

"Using Language Models to Understand Wage Premia"
Sarah Bana, Stanford Digital Economy Lab

Link:
eventpilot.us/appinfo.php?pa…
#ASSA2022

@SarahHBana @DigEconLab #EconTwitter

@SarahHBana @DigEconLab Using Language Models to Understand Wage Premia

Abstract
Does the text content of a job posting predict the salary offered for the role? There is ample evidence that even within an occupation, a job's skills and tasks affect the job's salary.

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@SarahHBana @DigEconLab Capturing this fine-grained information from postings can provide real-time insights on prices of various job characteristics. Using a new dataset from Greenwich.HR with salary information linked to posting data from Burning Glass Technologies, ...
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@SarahHBana @DigEconLab ... I apply natural language processing (NLP) techniques to build a model that predicts salaries from job posting text. This follows the rich tradition in the economics literature of estimating wage premia for various job characteristics by applying hedonic regression....

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@SarahHBana @DigEconLab ...My model explains 87 percent of the variation in salaries, 26 percent (18 percentage points) over a model with occupation by location fixed effects. I apply this model to the question of online certifications by creating counterfactual postings...

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@SarahHBana @DigEconLab ...and estimating the salary differential. I find that there is substantial variation in the predicted value of various certifications. As firms and workers make strategic decisions about their human capital, this information is a crucial input.

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