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Generative AI and Labor Market Matching Efficiency

Wiles, Horton

2025Working paper2 citations
Experimental evidenceCausalTheoretical model
LLM / Generative AIPlatforms / gig economyWriting / contentHuman-AI collaboration
DOI: 10.2139/ssrn.5187344
Summary

Wiles and Horton conduct a large-scale randomized field experiment on an online labor market where employers were offered AI-written first drafts of job posts to study how generative AI affects labor market matching efficiency and welfare

Main Finding

Offering employers AI-written job post drafts increased job posting by 19% and reduced writing time by 44%, but decreased hiring probability per post by 15%, resulting in no net increase in matches and a welfare loss of $2.16 per treated employer (jobseeker losses six times larger than employer gains)

Primary Datasets

Online labor market platform data

Secondary Datasets

None

Key Methods
Large-scale randomized field experiment where employers were randomly offered AI-written first drafts of job posts; analysis of posting behavior, hiring outcomes, and jobseeker responses; difference-in-differences analysis of market-wide rollout
Sample Period
2023-2024
Geographic Coverage
International
Sample Size
180,324 employers in main experiment; 1,174,442 job applications; market-wide rollout tracked 1,033,681 employers
Level of Analysis
Individual, Firm
Occupation Classification
None
Industry Classification
None
Notes
SSRN 5187344. Employers offered AI-written first drafts were 19% more likely to post and spent 44% less time writing, but no discernible increase in matches despite substantial increase in job posts. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects. [Claude classification]: Paper combines randomized field experiment with market-wide rollout analysis. Uses text embeddings and NLP to measure job post genericness. Includes formal economic model of employer effort and job posting decisions. Key innovation is measuring both sides of the market (employers and jobseekers) and tracking complete hiring funnel from job post creation through contract formation. Treatment effects persist after widespread adoption, suggesting structural rather than temporary effects.