As artificial intelligence (AI) transforms the labor market, new skills are becoming increasingly important for job seekers. A recent IZA discussion paper by Nick Drydakis investigates how incorporating AI education into an economics student’s skillset can boost their employability in the UK.
The study introduces the concept of “AI Capital,” encompassing the knowledge, skills, and potential productivity gains from understanding AI. To assess the impact of AI capital, Drydakis conducted a controlled experiment. He sent out real CVs of four economics students (two male, two female) to over 1,300 private sector firms for entry-level positions. All students were from the same university year with similar backgrounds. The key difference? Only one applicant in each pair had taken an “AI in Business” module, highlighted on their cover letter.
The results are compelling. Candidates with AI capital had a 22.7 percentage points higher chance of landing a job interview than their counterparts. This effect was even stronger for larger firms (35.9% advantage), suggesting their greater focus on AI implementation. Additionally, students with AI skills were invited to interviews for higher-paying jobs, with an estimated 10.5% salary premium.
While specific to the UK and a particular sector, this study highlights the significant advantage AI knowledge can give job seekers, particularly in economics.