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Generative artificial intelligence (AI) holds the potential to either complement workers by enhancing their productivity or substitute them. We examine the short-term effects of the recently released generative AI models (ChatGPT, DALL-E 2, and Midjourney) on the employment outcomes of freelancers on a large online platform. We find that freelancers in highly affected occupations suffer from the introduction of generative AI, experiencing reductions in both employment and earnings. We find similar effects studying the release of other image-based generative AI models. Exploring the heterogeneity by freelancers' employment history, we do not find evidence that high-quality service, measured by their past performance and employment, moderates the adverse effects on employment. In fact, we find suggestive evidence that top freelancers are disproportionately affected by AI. These results suggest that generative AI may transform the role of human capital in the organization and reduce overall demand for workers. Supplemental Material: The online appendices are available at https://doi.org/10.1287/orsc.2023.18441 .

Therelevanceofthestudyisdeterminedbythe emergence and consolidation of new trends in the implementation of labor activity of the population in the context of digitalization and new challenges, as well as the need for their comprehensive study.Thepurposeofthe study is to study the peculiarities of freelance activity of the Russian population on online labor market platforms, as well as to identify a set of measures necessary to obtain benefits from the implementation of this type of activity in order to stabilize the labor market during a period of change and reduce social tension.TheobjectivesofthestudyarerelatedtotheanalysisofsupplyanddemandfortheservicesofRussianfreelancersoninternationalonlinelabormarketplatforms,includingbycomparingitspositions with other countries; identifying measures to optimize the activities of online freelancers and stabilize the labor market during the period of change.Methodology.Theresearchwasimplementedusingthe method of collecting information from open Internet sources, tabular and graphical methods, the method of economic analysis, analysis and synthesis, systematization, comparison, logical method and systematic approach.Results.ItisdeterminedthatthefreelanceactivityoftheRussianpopulationintheonlineformathasgreatgrowthpotential.Theprerequisitesforthedevelopmentofonlinefreelancingarehighlighted,aswellasthemotivesforRussianspecialistsenteringthedigitalplatformsofthegloballabormarket.Theanalysisofthesupplyanddemandofonlinefreelancersonthelargestonlineemploymentplatformsintheperiod2017-2022wascarriedout.ThespecificsofRussiaarerevealedincomparisonwiththetrendstypicalforChina, India, Germany, Great Britain and the USA.Conclusion.Theconclusionismadeaboutthe high activity of Russian freelancers on the online platforms of the global labor market, about the predominantly growing dynamics of this market segment, as well as about the existing restrictions in this area, which can be overcome by greater support from the state.

The relevance of the study is the need to study current trends in the global online employment market in developed and developing countries in order to level out possible imbalances in the labor market in the context of digital development.The purpose of the study is to conduct a comparative analysis and identify the features of the participation of the population of the BRICS and OECD countries in the functioning of the global online labor market at the present stage, as well as to determine measures to ensure the balanced development of the traditional labor market in the implementation of new forms of online employment.The objectives of the study are to identify the level of formation of the basic conditions for the access of the population of some BRICS and OECD countries to the global online labor market; to determine trends in the participation of the population of the BRICS and OECD countries in the global online labor market; to form recommendations to ensure the balanced development of the traditional market in the conditions of the activation of the online labor market.Methodology. The study was conducted using the method of content analysis of information from open sources, methods of comparative and economic analysis. The results of data analysis are presented using systematization methods, tabular and graphical methods. The formation of recommendations is provided by the use of the logical method, as well as analysis and synthesis.Results. The gap in the level of formation of basic conditions for access to digital infrastructure between the BRICS and OECD countries has been revealed, which determines their differences in the use of the potential of the global online labor market. It has been established that the global online labor market is generally more preferable for employers from developed OECD countries and specialists from developing BRICS countries. The directions of expanding the possibilities of using the potential of the global online labor market for the BRICS and OECD countries are substantiated.Conclusion. The analysis confirmed the authors' assumption that there are significant differences between developed and developing countries in using the potential of public participation in the global online labor market.

Online labor markets experienced a rapid growth in recent years. They allow for long-distance transactions and offer workers access to a potentially 'global' pool of labor demand. As such, they bear the potential to act as a substitute for shrinking local income opportunities. Using detailed U.S. data from a large online labor platform for microtasks, we study how local unemployment affects participation and work intensity online. We find that, at the extensive margin, an increase in commuting zone level unemployment is associated with more individuals joining the platform and becoming active in fulfilling tasks. At the intensive margin, our results show that with higher unemployment rates, online labor supply becomes more elastic. These results are driven by a decrease of the reservation wage during standard working hours. Finally, the effects are transient and do not translate to a permanent increase in platform participation by incumbent users. Our findings highlight that many workers consider online labor markets as a substitute to offline work for generating income, especially in periods of low local labor demand. However, the evidence also suggests that, despite their potential to attract workers, online markets for microtasks are currently not viable as a long run alternative for most workers.

The objective of this technical report and the accompanying skills profiles report is twofold. First, the technical report explains the methodology used to transform job postings text into OV data and in turn, illustrates how to use those data to produce labor market intelligence valuable to different users. Second, the report presents answers to questions often asked by end-users and policymakers. This work is part of a series produced by the World Bank to support the Government of Indonesia in strengthening its labor market information system (LMIS). The OVO presents the results of one of four data pilots that, if adopted by the government, will provide the information needed to fill in important data gaps and to provide key labor market intelligence services to different users. Moreover, while this work focuses on the Indonesian context, it may also inform decisions in other developing countries that are considering the utilization of these data and having concerns about their validity when there is limited access to the internet and widespread informality.