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Skills That Pay: Digital Skills Demand and Wage Premia in Asia and the Pacific
Using a large language model to analyze millions of job postings, this paper tracks requirements for digital and artificial intelligence skills across six economies during 2019？2024.
It shows that demand for digital skills is spreading across the occupational structure, challenging the view that digitalization is confined to jobs that require advanced skills or intensive use of information and communication technology. By estimating wage premia for both digital and nondigital skills, the paper finds that intermediate and advanced digital skills are rewarded more than many highly paid abilities, including leadership, decision-making, and analytical skills.
It shows that demand for digital skills is spreading across the occupational structure, challenging the view that digitalization is confined to jobs that require advanced skills or intensive use of information and communication technology. By estimating wage premia for both digital and nondigital skills, the paper finds that intermediate and advanced digital skills are rewarded more than many highly paid abilities, including leadership, decision-making, and analytical skills.
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