The Broken Ladder: AI, Remote Work, and Early-Career Hiring
A new study challenges the belief that generative AI is behind the decline in early-career hiring. Researchers analyzed 243 million hires and 407 million job postings from four countries. They found remote work after the pandemic is a stronger factor than AI in reducing junior job opportunities. The impact of AI nearly disappears when remote work is considered. The findings urge policymakers and employers to rethink how working from home affects young workers entering the job market.
What it examines
This study examines whether generative AI is causing fewer early-career hires, using large datasets from four countries. It compares the effects of AI exposure and remote work, applying difference-in-difference methods to occupations, regions, and firms to understand what drives changes in junior hiring.
What it concludes
The research finds remote work, not generative AI, is the main reason for fewer early-career hires. This insight helps companies and policymakers focus on remote work’s impact. Future studies should explore how remote work changes job opportunities and career development for young workers.
Evidence objects
A major new study challenges the belief that generative AI is driving the decline in early-career hiring, revealing that the rise of remote work after the pandemic is a much stronger factor.
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Researchers analyzed 243 million hires and 407 million job postings from the US, UK, Canada, and Australia (2017--2025), using advanced statistical methods to separate the effects of AI and remote work.
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Findings show that when remote work is considered, AIs impact on junior hiring nearly vanishes, urging policymakers and employers to rethink how work-from-home trends are shaping opportunities for young workers.
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This paper uniquely analyzes generative AI and remote works effects on early-career hiring using large datasets and robust econometric methods. Its novelty lies in revealing remote work as a stronger predictor of junior hiring declines than AI. However, its originality and direct relevance to hedge fund AI adoption remain limited.
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Raw abstract and provenance
Yannick Schindler. London School of Economics. Date Written: May 18, 2026. Abstract. Is generative AI replacing junior workers? A growing literature
Source row: 1924 · abstract type: snippet